Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support

Swedish Tax Rates, Labor Supply, and Tax Revenues

Charles E. Stuart
Journal of Political Economy
Vol. 89, No. 5 (Oct., 1981), pp. 1020-1038
Stable URL: http://www.jstor.org/stable/1830818
Page Count: 19
  • Read Online (Free)
  • Download ($14.00)
  • Cite this Item
If you need an accessible version of this item please contact JSTOR User Support
Swedish Tax Rates, Labor Supply, and Tax Revenues
Preview not available

Abstract

Effective marginal tax rates on labor income for the "representative" Swede have increased from roughly 50 percent in 1959 to 80 percent today. The effects of this increase in the level of taxation are examined using a two-sector model parameterized to correspond to the Swedish economy. The model contains a single household which allocates labor to either taxed (essentially market) or untaxed (largely household) uses. The estimated long-run effects are sufficient to explain up to 75 percent of the recent decline in the measured growth rate of the Swedish GNP. Calculations of total tax revenues are also derived from the model. These peak when the tax rate is approximately 70 percent, indicating that Sweden is presently on the downward-sloping portion of its "Laffer Curve."

Page Thumbnails

  • Thumbnail: Page 
1020
    1020
  • Thumbnail: Page 
1021
    1021
  • Thumbnail: Page 
1022
    1022
  • Thumbnail: Page 
1023
    1023
  • Thumbnail: Page 
1024
    1024
  • Thumbnail: Page 
1025
    1025
  • Thumbnail: Page 
1026
    1026
  • Thumbnail: Page 
1027
    1027
  • Thumbnail: Page 
1028
    1028
  • Thumbnail: Page 
1029
    1029
  • Thumbnail: Page 
1030
    1030
  • Thumbnail: Page 
1031
    1031
  • Thumbnail: Page 
1032
    1032
  • Thumbnail: Page 
1033
    1033
  • Thumbnail: Page 
1034
    1034
  • Thumbnail: Page 
1035
    1035
  • Thumbnail: Page 
1036
    1036
  • Thumbnail: Page 
1037
    1037
  • Thumbnail: Page 
1038
    1038