In 1974, Arthur Laffer pointed out that reductions in tax rates would rise tax revenues while increments in tax rates decreases tax revenue. This argument has been defined as Laffer curve. Laffer curve has been popular in 1980s and various empirical studies have been introduced by then. For the most part of the studies, the results supporting Laffer curve have been obtained. In this article, the econometric models of Laffer curve for Turkey for the period of 1982-2016 were estimated. The models give similar results. The applications of the tax administration takes place on the normal side of the Laffer curve for the most part of the sample period. Therefore, the increases in tax rates will raise tax revenues. For the rest of the sample period, the increases of tax rate will not raise tax revenues
Real Time Impact Factor:
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Author Name: Handan Kaynar Bilgin
URL: View PDF
Keywords: Laffer Curve, Taxation, Optimal Tax, Model Estimation
ISSN: 2636-7645
EISSN: 2636-7645
EOI/DOI:
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