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We investigate bunching at personal tax thresholds over a 40-year period. At kinks, where the marginal tax rate rises, we find bunching among company owner-managers and the self-employed, but not those with only employment income. Notches, where the average rate rises, provide compelling...
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the magnitude of an elasticity estimate. Overall, the study confirms the fact that the ETI itself is endogenous to the …
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The elasticity of taxable income (ETI) is a key parameter in tax policy analysis. To examine the large variation found …
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contextual factors and the magnitude of an elasticity estimate. Selective reporting bias is prevalent in the literature and the …
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). Using this method one can get an estimate of the taxable income elasticity from the bunching pattern around a kink point … the bunching estimator cannot identify the taxable income elasticity when the functional form of the distribution of … whole budget set can be consistent with any positive taxable income elasticity if the distribution of heterogeneity is …
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