Distortionary Taxation and the Debt Laffer Curve

Distortionary Taxation and the Debt Laffer Curve
This paper highlights the importance of the role of the domestic tax system in determining the economic consequences of an external debt overhang. A simple taxation scheme is specified and it is shown that a country can be on the "wrong side" of its debt Laffer curve only if it is on the wrong side of its tax Laffer curve. The analysis indicates... READ MORE...

Publication date: January 1992
ISBN 9781451926545
$15.00

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