THE APPLICATION OF THE LAFFER CURVE IN THE ECONOMY OF TURKEY

Utku ALTUNÖZ
2017 Journal of International Social Research  
Laffer curve is based on the assumption that in case of the spendable income increase after tax, investors make much more investment. In this paper, tax policies were examined over the period 1980-2014 for Turkish economy through to 4 different models. Following ADF Unit root test , total tax variable, direct tax variable and income tax variable were tested for each model in order to understand tax policies was appropriate for Turkish economy in the light of Laffer curve. For each model, shape
more » ... each model, shape of laffer curve was found as a parallel of theoretical expectations. Besides, both tax rates that makes tax revenues maximum and minimum were not found appropriate with theoretical expectation.
doi:10.17719/jisr.2017.1698 fatcat:55o2gvtkznhyphfjkav7mnp4ti