The Horizontally S-Shaped Laffer Curve
在一个不完全市场和流动性约束代理人的新古典增长模型中，拉弗曲线的形状取决于政府如何调整债务或转移支付来平衡预算。当公共债务调整时，拉弗曲线呈水平S形，这由政府财富和利率变化的双重作用导致。
In a neoclassical growth model with incomplete markets and heterogeneous, liquidity-constrained agents, the properties of the Laffer curve depend on whether debt or transfers are adjusted to balance the government budget constraint. The Laffer curve conditional on public debt is horizontally S-shaped. Two opposing forces explain this result. First, when government wealth increases, the fiscal burden declines, calling for lower tax rates. Second, because the interest rate decreases when government wealth increases, fiscal revenues may also decline, calling for higher taxes. For sufficiently negative government debt, the second force dominates, leading to the odd shape of the Laffer curve conditional on debt.