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are attenuated relative to the true long-run macro elasticity. We proceed by providing two main empirical analyses using … model, according to which job switches can be used to (partially) identify the macro elasticity of labor supply. The …
Persistent link: https://www.econbiz.de/10014337783
this elasticity. The paper then examines this effect in the solution to the optimal income taxation problem when such an …
Persistent link: https://www.econbiz.de/10012470815
uncertainty, is the overall elasticity of taxable income. We provide new estimates of this elasticity which address identification … income, and on variation in the elasticity of taxable income by income group. We find that the overall elasticity of taxable … income is approximately 0.4; the elasticity of real income, not including tax preferences, is much lower. We also estimate …
Persistent link: https://www.econbiz.de/10012471264
This paper uses a panel of individual tax returns and the `bracket creep' as source of tax rate variation to construct instrumental variables estimates of the sensitivity of income to changes in tax rates. From 1979 to 1981, the US income tax schedule was fixed in nominal terms while inflation...
Persistent link: https://www.econbiz.de/10012471417
compensated elasticity of income with respect to tax rates. These models are used to perform simulations of bunching and calibrate … the key parameters (the behavioral elasticity and the extent to which taxpayers control their income) to the empirical … income distributions. Except for low income earners, the behavioral elasticity consistent with the empirical results is small …
Persistent link: https://www.econbiz.de/10012471418
In this paper I try to determine whether international trade has been increasing the own-price elasticity of demand for … elasticity patterns. Thus the time series of labor-demand elasticities are explained largely by a residual, time itself. This … residual for changing factor prices over time, there also appears to be a large unexplained residual for changing factor demand …
Persistent link: https://www.econbiz.de/10012472549
elasticity of capital gains realizations. Panel data are a particularly valuable source of evidence for this question, because …
Persistent link: https://www.econbiz.de/10012475800
Tax return data, which has been a principal source for econometric investigations of the behavioral response to tax policy, is subject to misreporting that may bias estimates of tax responsiveness. The misreporting arises because understatement of taxable income may itself be a function of an...
Persistent link: https://www.econbiz.de/10012476327
This paper reviews a variety of estimates of the demand and supply elasticities of educated labor. It finds that elasticities of substitution between more and less educated labor range fran 1.0 to 2.0 and that elasticities of the supply of students to colleges are also on the order of 1.0 to 2.0...
Persistent link: https://www.econbiz.de/10012478063
This paper investigates the magnitude of the elasticity of demand for labor in time series data using more general and … capital prices have an equal opposite effect to real wages in the demand equation. We show on measurement error grounds that … this constraint should not be imposed in econometric work even when long run homogeneity of prices correctly characterizes …
Persistent link: https://www.econbiz.de/10012478840