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mousey musings
Thursday, July 19, 2007
Entertainment from Junk Charts
This is a ghastly chart, indeed -- Where does one start? The line doesn't represent a statistical function that I've ever seen. There's no obvious, non-ideological reason to use a curvilinear shape rather than a linear one (Occam's Razor, anyone?). The dependent variable is all wrong (Laffer curves are supposed to be about the abolute amount of revenue collected, not the share of taxes as a fraction of GDP). And, of course, there was no obvious reason to pick 2004 and only 2004 for the data, ignoring longitudinal, within-country differences in revenue. I'll have to find a way to use this in my Political Economy course in August.
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