We study quot;habituationquot; to income and to status using individual panel data on the happiness of 7,812 people … living in Germany from 1984 to 2000. Specifically, we estimate a quot;happiness equationquot; defined over several lags of … income and status and compare the long run effects. We can (cannot) reject the hypothesis of no adaptation to income (status …

Previous studies of recent U.S. trends in intergenerational income mobility have produced widely varying results …, partly because of large sampling errors. By making more efficient use of the available information in the Panel Study of … Income Dynamics, we generate more reliable estimates of the recent time-series variation in intergenerational mobility. Our …

This paper presents a framework for the quantitative analysis of individual income dynamics, mobility and welfare, with … ex-ante identical individuals facing a stochastic income process and market incompleteness implying that they are unable … to insure against persistent shocks to income. We show how the parameters of the income process can be estimated using …

In this paper we use cross-state panel data to show a positive and significant correlation between various measures of … innovativeness and top income inequality in the United States over the past decades. Two distinct instrumentation strategies suggest … that this correlation (partly) reflects a causality from innovativeness to top income inequality, and the effect is …

Business income is important in the upper tail of the personal income distribution, but the extent to which it is … captured by measures of personal income varies substantially across tax regimes. Using linked individual and firm data from … Norway, we are able to attribute business income to personal owners as it accrues rather than when it is realized. This …

Using panel data for a sample of households in Utah from 1850 to 1900 we find income and wealth age profiles that are … a relationship between age-income and age-wealth profiles that is consistent with a life-cycle model of consumption … given a concave and peaked age-income profile: households accumulate and then begin to draw down wealth holdings, the age-wealth …

growth, (ii) the reward for creating a successful innovation is a top income, and (iii) innovation cannot be perfectly … that drive aggregate GDP, top income taxation reduces everyone's income, not just the income at the top. When the creation … top tax rate: the higher income that results from the subsidy to innovation more than makes up for the lost redistribution …

This paper summarizes the main findings of a recent literature that has constructed top income shares time series over … the long-run for more than 20 countries using income tax statistics. Top incomes represent a small share of the population … but a very significant share of total income and total taxes paid. Hence, aggregate economic growth per capita and Gini …

Knowing the elasticity of taxable income (ETI) is crucial for understanding the effects of taxation on taxpayer … behavior and consequently on tax revenues. Previous research finds that high-income individuals are the most sensitive to tax … policy changes. However, these individuals have more opportunities to defer income to future tax bases by altering the …

The relative income gains of the affluent after the passage of the Tax Reform Act of 1986 (TRA86), which sharply … lowered tax rates at high income levels, are overstated by comparing cross-sectional slices using concurrent income … income distribution can explain much of the increased high-income concentration until 1985, it cannot adequately explain the …