Also, Ireland used a model within the endogenous growth framework to show the dynamic nature of the Laffer curve. Further, Papp and Takat documented an increase in tax revenue in Russia following a small cut in tax rate in the country. Item Type:. This was acknowledged in Novales and Ruiz where the authors proved that the Laffer curve could be dynamic such that welfare provisions will help in increasing the tax base during any tax reform.
In the same vein, Spiegel and Templeman demonstrated the difference in the application of the Laffer curve to an individual and to the society.
A similar argument for a high labour-income tax rate and a large labour supply response to wage changes is found in Krause He found that corporate tax revenue as a percentage of GDP was a function of the corporate tax rates among these countries, thus lending support to the Laffer curve.
Most relevant here are the studies that used the concept in its original domain in determining the appropriate tax rate that maximises tax revenues. Corporate tax was the largest component of the direct tax collection, contributing RM This study is using annually time series data over the period from to Stay tuned for a new offer coming to you soon.
Thus, the curve is designed to depict two extreme ends when the level of tax revenue for the government will be zero.