How Does Tax Progressivity and Household Heterogeneity Affect Laffer Curves

@inproceedings{Holter2014HowDT,
  title={How Does Tax Progressivity and Household Heterogeneity Affect Laffer Curves},
  author={Hans Aasnes Holter and Dirk Krueger and Serhiy Stepanchuk},
  year={2014}
}
How much additional tax revenue can the government generate by increasing labor income taxes? In this paper we provide a quantitative answer to this question, and study the importance of the progressivity of the tax schedule for the ability of the government to generate tax revenues. We develop a rich overlapping generations model featuring an explicit family structure, extensive and intensive margins of labor supply, endogenous accumulation of labor market experience as well as standard… CONTINUE READING