Blomquist, Nils Sören; Newey, Whitney K.; Kumar, Anil; … - 2019
The taxable income elasticity is a key parameter for predicting the e?ect of tax reform or designing an income tax …. Bunching at kinks and notches in a single budget set have been used to estimate the taxable income elasticity. We show that … the size of the taxable income elasticity, and neither is the entire distribution of taxable income for a convex budget …