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A Sensitivity Analysis of the Elasticity of Taxable Income

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23 out of 49 users found this white paper useful


Publisher Congressional Budget Office
Publisher Registration Direct Access
Topics Financial Management Date added 01 Feb 2005
Downloads 6 Format 100.9KB PDF

This paper applies the methods of Gruber and Saez (2002) to a panel of tax returns spanning 1979 through 2001 in order to examine the sensitivity of the elasticities of taxable and broad income to an array of factors. The paper finds that that Gruber and Saez's approach yields an estimated elasticity of taxable income (ETI) for the 1990s that is about half the size of this paper's corresponding estimate for the 1980s.

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