can get an estimate of the taxable income elasticity from the bunching pattern around a kink point. The bunching estimator … cannot identify the taxable income elasticity when the functional form of the distribution of preference heterogeneity is … any taxable income elasticity if the distribution of heterogeneity is unrestricted. If one is willing to assume …

an estimate of the taxable income elasticity from the bunching pattern around a kink point. The bunching estimator has … identify the taxable income elasticity when the functional form of the distribution of preference heterogeneity is unknown. We … with any positive taxable income elasticity if the distribution of heterogeneity is unrestricted …

negative income elasticity of relative prices, whereas the relative price of aggregate services is mostly driven by large … expenditure categories in housing, health, and education that feature a positive income elasticity of relative prices. We also …-country income elasticity of sectoral productivity is large in non-traditional services (1.14), smaller in manufacturing (1.06) and …