Arbeitspapier

The Elasticity of Taxable Income: A Meta-Regression Analysis

The elasticities of taxable and broad income are key parameters in tax policy analysis. To examine the large variation in estimates found in the literature, I conduct a comprehensive meta-regression analysis using information from 51 studies containing 1,448 estimates. Heterogeneity in reported estimates is driven by regression techniques, sample restrictions and variations across countries and time. Moreover, I provide descriptive evidence of the correlation between contextual factors and the magnitude of an elasticity estimate. Selective reporting bias is prevalent in the literature and the direction of reporting bias depends on whether or not deductions are included in the tax base.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 11958

Classification
Wirtschaft
Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Tax Evasion and Avoidance
Subject
elasticity of taxable income
income tax
behavioural response
meta-regression
analysis

Event
Geistige Schöpfung
(who)
Neisser, Carina
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2018

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Neisser, Carina
  • Institute of Labor Economics (IZA)

Time of origin

  • 2018

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