Chang, Ming; Peng, Hsiao-Ping - In: International Tax and Public Finance 19 (2012) 5, pp. 650-659
This paper examines the Laffer effect in the Ramsey tax-model with linear consumption taxes and a representative … private goods are weak gross complements to each other, then the Laffer effect does not exist, in other words, higher tax … Laffer effect does exist. Moreover, if all of the private goods are weak gross substitutes, then the government cannot fully …