Umeå University's logo

umu.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The quality of the estimators of the ETI
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.ORCID iD: 0000-0001-9244-7018
2022 (English)In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 212, article id 104679Article in journal (Refereed) Published
Abstract [en]

The elasticity of taxable income (ETI) is a central statistic for tax policy design. One purpose of the present paper is to use Monte Carlo simulation techniques to assess the bias and precision of the prevalent estimators in the literature, the IV-regression estimator and the bunching estimator. Thereby, we aim to provide arguments in favor of, or against, using these methods. Another is to suggest indirect inference estimation to improve the quality of the measurement of the ETI. While IV-regression estimators perform well in terms of bias under certain conditions, they are more variable than bunching estimators. We also find that bunching estimators can be biased downward. The estimators based on indirect inference principles are practically unbiased and more precise than the other estimators.

Place, publisher, year, edition, pages
Elsevier, 2022. Vol. 212, article id 104679
Keywords [en]
Bunching, Elasticity of taxable income, Income tax, Indirect inference, IV estimation, Monte Carlo simulations
National Category
Economics Probability Theory and Statistics
Identifiers
URN: urn:nbn:se:umu:diva-198220DOI: 10.1016/j.jpubeco.2022.104679ISI: 000886362800003Scopus ID: 2-s2.0-85133863434OAI: oai:DiVA.org:umu-198220DiVA, id: diva2:1684206
Funder
The Jan Wallander and Tom Hedelius Foundation, P2016-0140:1The Royal Swedish Academy of Sciences, SO2017-0037Swedish Research Council, 2016-07213Swedish Research Council, 2018-01488Available from: 2022-07-22 Created: 2022-07-22 Last updated: 2023-09-05Bibliographically approved

Open Access in DiVA

fulltext(4001 kB)336 downloads
File information
File name FULLTEXT01.pdfFile size 4001 kBChecksum SHA-512
2f77c4d70915134c3afc990c68e8c4ef8bd3e753ac1a61bcace900ffd991c033f06b680c421c1228320827b54e3af1f9caf4f4d722b54bd66693c8ff4786b932
Type fulltextMimetype application/pdf

Other links

Publisher's full textScopus

Authority records

Aronsson, ThomasJenderny, KatharinaLanot, Gauthier

Search in DiVA

By author/editor
Aronsson, ThomasJenderny, KatharinaLanot, Gauthier
By organisation
Economics
In the same journal
Journal of Public Economics
EconomicsProbability Theory and Statistics

Search outside of DiVA

GoogleGoogle Scholar
Total: 337 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 746 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf