Saez, Emmanuel; Slemrod, Joel; Giertz, Seth H. - In: Journal of Economic Literature 50 (2012) 1, pp. 3-50
This paper critically surveys the large and growing literature estimating the elasticity of taxable income with respect to marginal tax rates using tax return data. First, we provide a theoretical framework showing under what assumptions this elasticity can be used as a sufficient statistic for...