IDEAS home Printed from https://ideas.repec.org/a/aiy/jnljtr/v3y2017i2p103-114.html
   My bibliography  Save this article

Visual Representation of Laffer Curve Factoring in Implications of Capital Outflow

Author

Listed:
  • Maria O. Kakaulina

Abstract

The article examines the problem of Laffer curve visualization. The purpose of the article is to propose a visual representation of the curve that takes into account the effects of capital outflow. The following research methods were used in the course of the research: historical method, comparative and critical analysis, graphical method. The author analyzes existing methods of the graphical representation of the curve drawin upon the interpretation of the original theoretical assumptions used for building a coordinate plane and taking into account additional factors (inflation, underground economy etc.). The author defines conditions for capital outflow and, as a result, for tax migration. The author proposes her own interpretation of the term “tax migration”, listing the key reasons for its occurrence. A variant of Laffer curve visualization in different coordinate planes has been developed, factoring in tax migration. The obtained results made it possible to establish a range of permissible changes to tax rates within which government tax revenue increases. The time frame in which tax revenue grows is different, depending on the dynamics of the tax rates.

Suggested Citation

  • Maria O. Kakaulina, 2017. "Visual Representation of Laffer Curve Factoring in Implications of Capital Outflow," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 3(2), pages 103-114.
    • Handle: RePEc:aiy:jnljtr:v:3:y:2017:i:2:p:103-114
    DOI: http://dx.doi.org/10.15826/jtr.2017.3.2.034
    as

    Download full text from publisher

    File URL: https://jtr.urfu.ru/fileadmin/user_upload/site_15907/main/Kakaulina__1_.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.15826/jtr.2017.3.2.034?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Arthur Laffer & David Meiselman, 1975. "The Phenomenon of Worldwide Inflation," Books, American Enterprise Institute, number 725613, September.
    2. Buchanan, James M & Lee, Dwight R, 1982. "Politics, Time, and the Laffer Curve," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 816-819, August.
    3. David Henderson, 1981. "Limitations of the Laffer Curve as a Justification for Tax Cuts," Cato Journal, Cato Journal, Cato Institute, vol. 1(1), pages 45-52, Spring.
    4. Zsolt Becsi, 2000. "The shifty Laffer curve," Economic Review, Federal Reserve Bank of Atlanta, vol. 85(Q3), pages 53-64.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dwi Orbaningsih & Agus Eko Sujianto, 2022. "The Impact of Tax Revenue on Economic Growth: Evidence from Indonesia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(5), pages 693-697, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexandru Minea & Patrick Villieu, 2009. "Impôt, déficit et croissance économique : un réexamen de la courbe de Laffer," Revue d'économie politique, Dalloz, vol. 119(4), pages 653-675.
    2. E. EHRHART & Alexandru MINEA & Patrick VILLIEU, 2009. "Deficits, Seignorage and the Growth Laffer Curve in Developing Countries," LEO Working Papers / DR LEO 118, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    3. Şen, Hüseyin & Bulut-Çevik, Zeynep Burcu & Kaya, Ayşe, 2017. "The Khaldun-Laffer Curve Revisited: A Personal Income Tax-Based Analysis for Turkey," MPRA Paper 78850, University Library of Munich, Germany, revised 27 Apr 2017.
    4. Dwight Lee, 1985. "Reverse revenue sharing: A modest proposal," Public Choice, Springer, vol. 45(3), pages 279-289, January.
    5. Roger N. Waud, 1985. "Tax Aversion, Deficits and the Tax Rate-Tax Revenue Relationship," NBER Working Papers 1533, National Bureau of Economic Research, Inc.
    6. Michael R. Darby, 1983. "International Transmission of Monetary and Fiscal Shocks under Pegged and Floating Exchange Rates: Simulation Experiments," NBER Chapters, in: The International Transmission of Inflation, pages 162-231, National Bureau of Economic Research, Inc.
    7. J H Cole, 1986. "Inflation in Latin America, 1970–1980," Environment and Planning C, , vol. 4(1), pages 31-41, March.
    8. Ehrhart, Hélène & Minea, Alexandru & Villieu, Patrick, 2014. "Debt, seigniorage, and the Growth Laffer Curve in developing countries," Journal of Macroeconomics, Elsevier, vol. 42(C), pages 199-210.
    9. David R. Henderson, 1989. "Are We All Supply‐Siders Now?," Contemporary Economic Policy, Western Economic Association International, vol. 7(4), pages 116-128, October.
    10. Liliana Bunescu & Carmen Comaniciu, 2013. "Graphical Analysis Of Laffer'S Theory For European Union Member States," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 16-23, April.
    11. Segura III, Jerome, 2016. "A Regional Tale of Two Income Taxes," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 46(2), December.
    12. Mark A Roberts, 2013. "Fiscal rules and the maximum sustainable size of the public debt in the Diamond overlapping generations model," Discussion Papers 2013/07, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
    13. Keizer, P.K., 1997. "Nederland, wat gaan we de komende jaren doen?," Research Memorandum 011, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    14. Lawrence B. Lindsey, 1985. "Taxpayer Behavior and the Distribution of the 1982 Tax Cut," NBER Working Papers 1760, National Bureau of Economic Research, Inc.
    15. F Guedes de Oliveira & L Costa, 2015. "The VAT Laffer Curve and the Business Cycle in the EU27: An Empirical Approach," Economic Issues Journal Articles, Economic Issues, vol. 20(2), pages 29-43, September.
    16. Zeljko Bogetic & Arye Hillman, 2005. "The Tax Base in Transition: The Case of Bulgaria, World Bank Policy Research Working Paper Series No. 1267 (March 1994), The World Bank," Public Economics 0510009, University Library of Munich, Germany.
    17. Giovanni Di Bartolomeo & Marco Di Pietro & Enrico Saltari & Willi Semmler, 2018. "Public debt stabilization: the relevance of policymakers’ time horizons," Public Choice, Springer, vol. 177(3), pages 287-299, December.
    18. Michael R. Darby & James R. Lothian, 1981. "Exchange Rate Systems and Trends in Inflation," UCLA Economics Working Papers 226, UCLA Department of Economics.
    19. William C. Mitchell & Michael C. Munger, 1993. "Doing Well While Intending Good: Cases in Political Exploitation," Journal of Theoretical Politics, , vol. 5(3), pages 317-348, July.
    20. Lawrence B. Lindsey, 1986. "Individual Taxpayer Response to Tax Cuts 1982-1984 with Implications forthe Revenue Maximizing Tax Rate," NBER Working Papers 2069, National Bureau of Economic Research, Inc.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aiy:jnljtr:v:3:y:2017:i:2:p:103-114. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalia Starodubets (email available below). General contact details of provider: https://edirc.repec.org/data/seurfru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.