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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 …
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We use variation in marginal tax rates and in tax bracket thresholds at which they apply in order to identify the substitution and income effects of tax reforms. We use a triple-difference estimator that exploits variation from subnational tax reforms, for which behavioral responses to taxes are...
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