UoH 2016 Question 12: Taxation: incidence and efficiency
A cross section empirical investigation for several advanced economies suggested that there is a non-linear inverted U-shaped relationship between tax rates and total tax revenues. This relationship became popular as:
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Taxation: incidence and efficiency has come up 79 times in 7 exams since 2009.
What this question tests
This question is on The Laffer curve, tax buoyancy and tax revenue, part of Taxation: incidence and efficiency in Public Economics.
How revenue responds to rates and to growth.
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