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Theoretical Foundations of the Laffer Curve

The Laffer Curve is the most evident illustration of the key postulations of the supply-side economics. Presently, almost all modern economics textbooks are evidently critical of the Laffer Curve. Despite this, there are a number of most recent works aimed at studying mathematical and empirical implications of the Laffer Curve. It must be underlined that originally the Laffer Curve was formulated in a macroeconomic context, for which reason it is not applicable to individual taxes, but rather to a certain average aggregate tax.