Thomas, Alastair - In: New Zealand Economic Papers 46 (2012) 2, pp. 159-167
This paper uses the 1986 New Zealand tax reform as a ‘natural experiment’ to estimate the elasticity of taxable income for New Zealand. Adopting the methodology of Auten and Carroll (1999), elasticity estimates ranging from 0.34 to 0.52 are obtained. These results imply a significant...