Various estimation approaches have been used in recent literature to study the effect of nonlinear income taxation on labour supply. Different techniques and data sets have produced a wide range of income and substitution elasticities. In this study, we utilize register data provided by the tax...

This study analyzes whether fiscal policy decisions have real effects on the economy of Finland, and if they do, what are the strength and durations of the effects. We utilise the Vector Stochastic Process with Dummy Variables (VSPD) method in our empirical work. This approach is a suitable tool...