Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/219189
Authors: 
Umer, Hamza
Year of Publication: 
2018
Citation: 
[Journal:] Games [ISSN:] 2073-4336 [Volume:] 9 [Year:] 2018 [Issue:] 3 [Pages:] 1-14
Abstract: 
This paper reports results from controlled laboratory experiments on the Laffer curve and explores the productivity differences under the strategy method and the direct method. The data collected in Pakistan show no significant productivity difference across the two methods. The paper argues that the Laffer curve is not the result of a simple leisure-income tradeoff; the disutility of work and perceived unfairness of the tax imposed also influence the work decisions. A behavioral model that incorporates these factors induces a 'fairness adjusted' Laffer curve with the negative relationship between tax rate and tax revenue showing up after 54% tax rate.
Subjects: 
Laffer curve
direct method
strategy method
disutility
fairness
behavioral
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.