Epstein, Brendan; Orak, Musa; Nunn, Ryan; Patel, Elena - 2020
Taking inefficiencies from taxation as given, a well-known public finance literature shows that the elasticity of taxable income (ETI) is a sufficient statistic for assessing the deadweight loss (DWL) from taxing labor income in a static neoclassical framework. Using a theoretical approach, we...