-price elasticity between gasoline and leisure. Prior work indicates that in a second-best setting with distortionary income taxes, both … the cost of environmental regulation and the optimal environmental tax rate depend crucially on the cross-price elasticity … elasticity. Using household data, we find that gasoline is a relative complement to leisure, and thus that the optimal gasoline …

.S. tax reforms of the 1980s and a number of smaller tax law changes, I find that the elasticity of income reported on … personal income tax returns depends on the available deductions. This highlights that this key behavioral elasticity is not a …

elasticity measures are not sufficient statistics and must be adjusted upwards in optimal tax formulas. Finally, we study a …

This paper critically surveys the large and growing literature estimating the elasticity of taxable income with respect … assumptions this elasticity can be used as a sufficient statistic for efficiency and optimal tax analysis. We discuss what other … parameters should be estimated when the elasticity is not a sufficient statistic. Second, we discuss conceptually the key issues …

this elasticity. The paper then examines this effect in the solution to the optimal income taxation problem when such an …

distributions and a range of realistic elasticity parameters …

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 …

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 …