Abstract An increasingly common technique for studying behavioral elasticities uses bunching estimation of the excess mass in a distribution around a price or policy threshold. This paper shows how serial dependence of the choice variable and extensive-margin responses may bias these estimates....

Taxes and regulations, such as labor laws and reporting requirements, often exempt small firms, creating incentives to stay small or delay growth. Firms' responses to such size thresholds provide an opportunity to empirically assess consequences of regulations and firms' willingness to pay to...