This paper provides a unified framework in which to examine income and consumption tax revenue elasticities. In addition, new results are established in relation to consumption taxes. These results help to provide a better understanding of the determinants of the revenue responsiveness...

This paper provides new estimates of the revenue elasticity of income taxes in the UK over the period 1989-2000. Observed changes in these elasticities are decomposed into changes due to inflation, real income growth, changes in fiscal structure, and changes in the dispersion of incomes in the...

The purpose of this paper is to extend the analysis of built-in flexibility to various forms of consumption taxation. This is useful in view of the extensive use of indirect taxes. Section 2 begins with basic definitions and a discussion of income taxation, concentrating on the multi-step case....

This paper aims to examine the growth effects of human capital investment achieved through publicly-provided, compulsory education, financed from income and consumption taxes.

The objective of the paper is to explore the saving and consumption responses of a representative household to a range of policy interventions such as changes in taxes and pension settings. To achieve this, it develops a two-period life-cycle model. The representative household maximises...

A recent review of empirical estimates of the elasticity of taxable income (ETI) concluded that ‘the US marginal top rate is far from the top of the Laffer curve’ (Saez et al, 2012, p.42). This paper provides a detailed examination of the analysis underlying this conclusion, and considers...

The empirical literature on the elasticity of taxable income (ETI) sometimes questions whether estimated values are consistent with being on the revenueincreasing section of the Laffer curve, usually in the context of a single rate tax system or for top marginal rates. This paper develops...

This paper shows how income changes in response to changes in marginal income tax rates (MTRs) translate into tax revenue changes for the familiar multi-step income tax function used in many countries. Previous literature has focused on the relatively straightforward case of a proportional...

This paper examines the extent to which projected aggregate tax revenue changes, association with population ageing over the next 50 years, can be expected to finance expected increases in social welfare expenditures. Projections from two separate models, dealing with social expenditures and...

The objective of the paper is to explore the saving and consumption responses of a representative household to a range of policy interventions such as changes in taxes and pension settings. To achieve this, it develops a two-period life-cycle model. The representative household maximises...