Several recent studies show that the elasticity of taxable income (ETI) is not a sufficient statistic for the welfare … indicate an overall ETI between 0.35 and 0.68 and an elasticity of deductions with respect to the net-of-tax rate between -0 …-sufficiency of the ETI, namely tax deductions. Building on a theoretical framework which incorporates deductions in a standard …

a vital area of economic research. This paper adds to this literature by estimating the tax price elasticity of … elasticity estimate of –0.51 and an income elasticity estimate of 0.13, whereas OLS produces estimates that conflict with …

, elasticity of substitution between factors and mark-up on final prices. In addition, policy strategies favouring tax increases on …

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

our empirical example we find that income-shifting accounts for over two thirds of the overall elasticity of taxable … burden compared to the standard model in which the overall elasticity defines the welfare loss. However, in addition to …

can get an estimate of the taxable income elasticity from the bunching pattern around a kink point. The bunching estimator … cannot identify the taxable income elasticity when the functional form of the distribution of preference heterogeneity is … any taxable income elasticity if the distribution of heterogeneity is unrestricted. If one is willing to assume …