Macnamara, Patrick; Pidkuyko, Myroslav; Rossi, Raffaele - 2021
income to marginal tax changes. In our economy, agents who are sufficiently productive can obtain higher returns by choosing … to be entrepreneurs. Return heterogeneity amplifies the responsiveness of total income to marginal tax changes along the … entire income distribution with the top 1 percent displaying the highest elasticities. Return heterogeneity increases the …