Blomquist, Nils Sören; Newey, Whitney K. - 2017
Saez (2010) introduced an influential estimator that has become known as the bunching estimator. Using this method one … can get an estimate of the taxable income elasticity from the bunching pattern around a kink point. The bunching estimator … has become popular, with a large number of papers applying the method. In this paper, we show that the bunching estimator …