Harberger`s superneutrality conjecture contends that, although in theory the mix of direct and indirect taxes affects …-country regressions and numerical simulations, using a new methodology for estimating aggregate effective tax rates. Results show …

This paper explores how revenue-neutral tax reforms impact employment and economic growth in a model of endogenous … tax swaps between wage income taxes, payroll taxes, capital income taxes and taxes levied on capital costs. In our … framework, the payroll tax is found to be neutral. If this tax is used to finance a cut in the capital income tax, we will …