The taxable income elasticity is a key parameter for predicting the effect 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 …

negative income elasticity of relative prices, whereas the relative price of aggregate services is mostly driven by large … expenditure categories in housing, collective government, and health that feature a positive income elasticity of relative prices …-country income elasticity of sectoral productivity is large in non-traditional services (1.15), smaller in manufacturing (1.05) and …

We evaluate the income elasticity of the aggregate budget share spent on a sub-group of commodities, in a competitive … the logarithm of the heterogeneity factor has an increasing (exponential) density with a large support. Aggregate income … elasticity converges to that exponential density parameter when its support becomes infinitely large. Symmetric results hold in …