Problems and criticism of applying the Laffer Curve in the context of regional economy

this article offers an analysis of key critical remarks related to the practical application of the Laffer Curve. Both foreign and domestic approaches to the Laffer Curve are examined, highlighting differences in its use in macro- and microeconomic modeling. Particular attention is given to the work of E.V. Balatsky, who developed a model for assessing Laffer points of the first and second kind through production-institutional functions. Issues related to the elasticity of labor and capital supply, the role of inflation, and the impact of the shadow economy on tax revenues are analyzed. The article discusses mathematical complexities and uncertainties in the graphical representation of the Laffer Curve. Attention is also directed to the need to adapt the model to the regional level, which requires a review of model parameters and assumptions for more accurate assessments of the tax burden and forecasting of budget revenues. Therefore, the study aims to systematize critical remarks and explore the applicability of the Laffer Curve within regional tax systems. The purpose of the work is to systematize and verify the main theoretical assumptions, limitations, and graphical interpretation of the Laffer Curve, as well as to determine the possible scope of its application. The object of the study is the application of the Laffer Curve to the regional economy, and the subject is the mathematical methods for assessing the tax burden

Laffer Curve, tax burden, regional economy, shadow economy, supply elasticity, inflation, fiscal policy, economic growth, mathematical modeling, Laffer points, tax revenues, optimal taxation, production-institutional functions, regional differences, tax system