Research background: Two main theoretical patterns of exports diversification have evolved in development economics: the intensive- and extensive-export margins. Myriads of studies have assessed the relative merits of both patterns of diversification in promoting economic growth. Empirical...

This paper shows that kinks or discontinuities in economic incentive schemes, such as taxes or subsidies, simultaneously identify agents' intensive and participation margin responses. The proposed semi-nonparametric estimator enables the evaluation of such schemes when existing kink and...