Taxation and Laffer effects on employment and growth
Some dangerous short- and long-termambiguities of fiscal policies arise from
the belief that Laffer effects may be generated from deficit-financed tax cuts able to
stimulate aggregate demand. However, even in a supply-side framework, fiscal illusion
prevents a rational perception of the effectiveness of Laffer-oriented fiscal measures.
The ambiguity of the Laffer effect led to an important series of studies of Francesco
Forte, designed to disclose and empirically test its interactions with short- and long-term