Blomquist, Sören; Kumar, Anil; Liang, Che-Yuan; Newey, … - Nationalekonomiska Institutionen, Uppsala Universitet - 2014
Given the key role of the taxable income elasticity in designing an optimal tax system there are many studies attempting to estimate this elasticity. A problem with most of these studies is that strong functional form assumptions are used and that heterogeneity in preferences is not allowed for....