Graber, Michael; Håvarstein, Morten; Mogstad, Magne; … - 2026
The elasticity of taxable income (ETI) parameter is a key quantity in empirical analysis of tax policy and labor supply … to lottery winnings. The results suggest an (un)compensated elasticity of 0.1 (0.0) for middle-income individuals. The … (un)compensated elasticity estimates increase steadily with income to around 0.45 (0.3) for high-income individuals. These …