Some of the fallacies and flaws that subsist in certain standard accounts of the general effects of taxation can be related to the fact that the primary significance of time preference has been insufficiently recognized. This article constitutes an attempt to help remedy this situation. Some...

The public managers worries to increase the local government revenues are almost always related with changes in the tax rates, affecting all the agents in the economy. However, at the same time tax exemptions are used like policy instrument in order to achieve economic growth in some sectors,...

We develop a Fiscal Frontier which traces out the maximum government debt level that can be sustained at a given welfare cost. Through duality, the intertemporal policy mix underpinning the Frontier mirrors standard Ramsey policy and defines an upper limit on the welfare gains that can be...

How much fiscal space do Latin American countries have to increase their tax burdens in the long term? This paper provides an answer through Laffer curves estimates for taxes on labor, capital, and consumption for the six largest emerging economies of the region: Argentina, Brazil, Chile,...

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...

The 'corrections' to the Laffer Curve are based on a factor of time. High importance is the question – in which direction the average aggregate tax is changing: upward or downward, when the Laffer Effect always appears a couple of years later. Alternatives of the Laffer Curve are constructed...

We characterize the Pareto-frontier in a simple Mirrleesian model of income taxation. We show how the second-best frontier which incorporates incentive constraints due to private information on productive abilities relates to the first-best frontier which takes only resource constraints into...

The article examines the approach to estimating the effect of the tax burden on the amount of total output and budget revenues. This approach uses a behavioral model, with a specific version of an entropy function. The suggested model makes it possible to determine the fiscal points...

We characterize the Pareto-frontier in a simple Mirrleesian model of income taxation. We show how the second-best frontier which incorporates incentive constraints due to private information on productive abilities relates to the first-best frontier which takes only resource constraints into...