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Fiscal Policy after the Financial Crisis$
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Alberto Alesina and Francesco Giavazzi

Print publication date: 2013

Print ISBN-13: 9780226018447

Published to Chicago Scholarship Online: September 2013

DOI: 10.7208/chicago/9780226018584.001.0001

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How Do Laffer Curves Differ across Countries?

How Do Laffer Curves Differ across Countries?

Chapter:
(p.211) 6 How Do Laffer Curves Differ across Countries?
Source:
Fiscal Policy after the Financial Crisis
Author(s):

Mathias Trabandt

Harald Uhlig

Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226018584.003.0007

This chapter examines how Laffer curves differ across countries in the United States and the EU-14. It shows that the differences between Laffer curves arise solely due to differences in fiscal policy; that is, the mix of distortionary taxes, government spending, and government debt. Labor income and consumption taxes are important for accounting for most of the cross-country differences. A commentary is also included at the end of the chapter.

Keywords:   Laffer curves, EU-14, United States, fiscal policy, government spending, public debt, government debt, taxation, interest rates

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