Identifying the Elasticity of Taxable Income
Bibliographic Data
| ID | 9719202 |
|---|---|
| Authors | Sarah K Burns (Institute for Defense Analyses), James P Ziliak (University of Kentucky) |
| Year | 2017 |
| Volume | 127 |
| Issue | 600 |
| Pages | 297-329 |
| Publication date | 2017-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/ecoj.12299 |
| OpenAlex | W2150362808 |
| Language | EN |
| Citations received | 5 |
| References cited | 38 |
We use matched panels from the Current Population Survey along with a grouping instrumental variables estimator to provide new estimates of the elasticity of taxable income. Our identification strategy exploits the fact that federal and state tax reforms over the past three decades have differentially affected cohorts across states and over time. We find that the elasticity is in the range of 0.4–0.55. The implication of our new estimates for tax policy is that the revenue‐maximising tax rate is nearly 30 percentage points lower than that obtained when we use the typical identification strategy in the literature
Econometrics · Economics · Elasticity (physics · Estimator · Instrumental variable · Population · Public economics · Revenue · Statistics · Tax policy · Tax reform · Tax revenue · Taxable income · Accounting · Demography · Financial Literacy, Pension, Retirement Analysis · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics · Mathematics
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The elasticity of taxable income
Measuring the Impacts of Teachers II
Alternative methods for evaluating the impact of interventions
Errors in variables in panel data
Biases in Dynamic Models with Fixed Effects
Sample Selection Bias as a Specification Error
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Estimating Labor Supply Responses Using Tax Reforms
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Labor Supply and Taxes
Assessing Empirical Approaches for Analyzing Taxes and Labor Supply
Robust Inference With Multiway Clustering
Recent Trends in Top Income Shares in the United States
The Effect of Income Taxes on Household Income
Are Household Surveys Like Tax Forms? Evidence from Income Underreporting of the Self-Employed
The effect of recent tax changes on taxable income
How Taxes Affect Economic Behavior
Extimating Life Cycle labor Supply Tax Effects
The Effect of Marginal Tax Rates on Taxable Income
| Unique citing works | 5 |
|---|---|
| Citations per year | 0,56 |
| Citation span | 2017 - 2025 (9) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 5 |