Theoretical Foundations of the Laffer Curve
Bulletin of Georgian National Academy of Sciences, Vol. 2, No. 4, 2008
5 Pages Posted: 30 Nov 2012
Date Written: November 29, 2012
The Laffer Curve is the most evident illustration of the key postulations of the supply-side economics. Presently, almost all modern economics textbooks are evidently critical of the Laffer Curve. Despite this, there are a number of most recent works aimed at studying mathematical and empirical implications of the Laffer Curve. It must be underlined that originally the Laffer Curve was formulated in a macroeconomic context, for which reason it is not applicable to individual taxes, but rather to a certain average aggregate tax.
Keywords: Laffer Curve, taxes, supply-side economics
JEL Classification: E62, H21,
Suggested Citation: Suggested Citation