Arbeitspapier
Estimating taxable income responses with elasticity heterogeneity
We explore the implications of heterogeneity in the elasticity of taxable income (ETI) for tax-reform based estimation methods. We theoretically show that existing methods yield elasticities that are biased and lack policy relevance. We illustrate the empirical importance of our theoretical analysis using the NBER tax panel for 1979-1990. We show that elasticity heterogeneity is the main explanation for large differences between estimates in the previous literature. Our preferred, newly suggested method yields elasticity estimates of approximately 0.7 for taxable income and 0.2 for broad income.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 2017:5
- Klassifikation
-
Wirtschaft
Consumer Economics: Theory
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Time Allocation and Labor Supply
- Thema
-
elasticity of taxable income
elasticity heterogeneity
tax reforms
panel data
preference heterogeneity
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kumar, Anil
Liang, Che-Yuan
- Ereignis
-
Veröffentlichung
- (wer)
-
Uppsala University, Department of Economics
- (wo)
-
Uppsala
- (wann)
-
2017
- Handle
- URN
-
urn:nbn:se:uu:diva-320178
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Kumar, Anil
- Liang, Che-Yuan
- Uppsala University, Department of Economics
Entstanden
- 2017
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