This paper evaluates the tax reforms carried out in Sweden between 1980 and 1991. We use a recently developed nonparametric labor supply function to account for the behavorial responses of the taxed individuals. We decompose the tax reform to study how the separate components influence hours of...

The basic idea in this paper is that labor supply can be viewed as a function of the entire budget set, so that one way to account non-parametrically for a nonlinear budget set is to estimate a nonparametric regression where the variable in the regression is the budget set. In the special case...