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Equity-efficiency dilemma and tax harmonization Cover
Open Access
|Dec 2022

Figures & Tables

Figure 1

Optimal direct and indirect tax rates
Optimal direct and indirect tax rates

Estimates of consumption and labour supply functions

A. Consumption function (ln C)
VariableCoefficientt-statProbability
constant4.2410.300.00
lnti (a1)−0.49−13.100.00
lncom0.8240.200.00
Adj. R2=0.99, J-stat=2.93E-17

Optimal vis-à-vis actual tax rates

A. kτ¯y1+b1-a1+τ¯y=τ¯ \boldsymbol{k\bar \tau}_\boldsymbol{y}^{\boldsymbol{1 +}{\boldsymbol{b}_\boldsymbol{1}}\boldsymbol{-}{\boldsymbol{a}_\boldsymbol{1}}}\boldsymbol{+}{\boldsymbol{\bar \tau}_\boldsymbol{y}} = \boldsymbol{\bar \tau} optimal τ¯y {\boldsymbol{\bar \tau}_\boldsymbol{y}}
1.67τ y2.98+τ y=0.5060.40
B. actual (average) τ¯y {\boldsymbol{\bar \tau}_\boldsymbol{y}} actual (average) τ¯i {\boldsymbol{\bar \tau}_\boldsymbol{i}} optimal τ¯y {\boldsymbol{\bar \tau}_\boldsymbol{y}} optimal τ¯i {\boldsymbol{\bar \tau}_\boldsymbol{i}}
0.320.190.400.11
DOI: https://doi.org/10.2478/ceej-2022-0020 | Journal eISSN: 2543-6821 | Journal ISSN: 2544-9001
Language: English
Page range: 342 - 353
Published on: Dec 31, 2022
Published by: Faculty of Economic Sciences, University of Warsaw
In partnership with: Paradigm Publishing Services
Publication frequency: 1 times per year

© 2022 Basil Dalamagas, John Leventides, Stefanos Tantos, published by Faculty of Economic Sciences, University of Warsaw
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.