Analyzing the universe of federal environmental regulations in the U.S., we construct a measure of regulations--direct taxes on pollution. Analyzing the universe of firms' investor disclosures, we construct a measure of material environmental concerns--indirect taxes on pollution. These two...

The goal of this paper is to examine the shape of the Laffer curve quantitatively in a simple neoclassical growth model calibrated to the US as well as to the EU-15 economy. We show that the US and the EU-15 area are located on the left side of their labor and capital tax Laffer curves, but the...