Carey, Simon; Creedy, John; Gemmell, Norman; Teng, Josh - 2015
This paper produces regression estimates of the elasticity of taxable income in New Zealand using two new instruments … tax rate and taxable income in a non‐linear tax structure. However, in the New Zealand context, the ‘standard’ regression … instrument is found to be unable to accommodate the substantial observed exogenous (non‐tax‐induced) changes in taxable income …