Dear Community,
I would like to know how to draw a Laffer curve on Dynare, knowing that the tax revenue is noted “T” and the exogenous variable is noted Tau.
Otherwise, I need a curve plotting the values of “T” for any 0<Tau<1.
Thank you in advance
You Can try with the book of José Luis Torres Chacon, 2015. “Introduction to Dynamic Macroeconomic General Equilibrium Models ,” Vernon Press Titles in Economics, Vernon Art and Science Inc, edition 2, number 54, July.
there is a chapter dedicated to plotting Laffer curve
best
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It indicated that I should calculate the steady-state of model for a value of the tax rate from 0 to 1. But, I don’t know how to program it ? I relly need a help.
Haven’t done something along this line but it sounds like you should write a Matlab script that loops through the tax rate parameter from 0 to 1 and then extract the steady state of whatever variables you are interested in.
Search the forum, there are multiple posts regarding looping over parameters.
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try to replicate his sample code in chapter 7 and then for your model as well. There is the code complete where he shows how to plot it
Yeah, exactly what I want. Thank you all.