A Non-Singular Peaked Laffer Curve: Debunking the Traditional Laffer Curve

Uriel Spiegel, Joseph Templeman

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

This paper has two purposes: first, to demonstrate a utility function of consumption and leisure that leads to a backward-bending supply of labor. The second purpose is to show that in spite of the fact that a Laffer curve of any individual in a society may have one-peak point where tax revenue is at its maximum, the aggregate (macro) Laffer curve is very likely to have multi (or at least dual) peaks. This is caused by the high degree of inequality in wage distribution in most western countries.

Original languageEnglish
Pages (from-to)61-66
Number of pages6
JournalThe American economist
Volume48
Issue number2
DOIs
StatePublished - Oct 2004

Bibliographical note

Publisher Copyright:
© 2004 Omicron Delta Epsilon.

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