Figure 1
Consumption holding ct constant
Table 3
Steady State and Data Averages 2009–2013
| Variable | Model-produced value | Data value |
|---|---|---|
| c/y | 0.536 | 0.539 |
| i/y | 0.181 | 0.182 |
| rb | 0.051 | 0.015* |
Figure 2
Consumption Tax Laffer Curves
Figure 3
Labor Income Tax Laffer Curves
Figure 4
Capital Income Tax Laffer Curve
Figure 5
Iso Tax Revenue Curves when τk = 0
Table 4
Sensitivity of the Model with Home Production
| Parameter | Baseline | Modified | Laffer Peak | ||
|---|---|---|---|---|---|
| value | value | τn | τc | τk | |
| Baseline | 35% | 60% | 0% | ||
| Behavioral parameters | |||||
| σ | 2 | 0.5 | +4% | +11% | 0% |
| β | 0.969 | 0.95 | 0% | –5% | 0% |
| ϕ | 0.82 | 0.1 | +5% | +12% | +2% |
| κ | 0.5 | 0.4 | +1% | +33% | 0% |
| Firm level parameters | |||||
| gA | 0.009 | 0.02 | –2% | –8% | 0% |
| δ | 0.06 | 0.09 | 0% | –8% | 0% |
| The government | |||||
| g/y | 0.243 | 0.3 | 0% | –9% | 0% |
| b/y | 0.493 | 0.8 | 0% | 0% | 0% |