The Elasticity of Taxable Income: A Meta-Regression Analysis

Carina Neisser

No 67, ECONtribute Discussion Papers Series from University of Bonn and University of Cologne, Germany

Abstract: The elasticity of taxable income (ETI) is a key parameter in tax policy analysis. To examine the large variation found in the literature of taxable and broad income elasticities, I conduct a comprehensive meta-regression analysis using information from 61 studies containing 1,720 estimates. My findings reveal that estimated elasticities are not immutable parameters. They are correlated with contextual factors and the choice of the empirical specification influences the estimated elasticities. Finally, selective reporting bias is prevalent, and the direction of bias depends on whether deductions are included in the tax base.

Keywords: elasticity of taxable income; income tax; behavioural response; meta-regression analysis (search for similar items in EconPapers)
JEL-codes: C81 H24 H26 (search for similar items in EconPapers)
Pages: 67 pages
Date: 2021-02
New Economics Papers: this item is included in nep-cwa, nep-ore, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

Downloads: (external link)
https://www.econtribute.de/RePEc/ajk/ajkdps/ECONtribute_067_2021.pdf First version, 2021 (application/pdf)

Related works:
Journal Article: The Elasticity of Taxable Income: A Meta-Regression Analysis (2021)
Working Paper: The Elasticity of Taxable Income: A Meta-Regression Analysis (2018)
Working Paper: The elasticity of taxable income: A meta-regression analysis (2017)
Working Paper: The elasticity of taxable income: A meta-regression analysis (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ajk:ajkdps:067

Access Statistics for this paper

More papers in ECONtribute Discussion Papers Series from University of Bonn and University of Cologne, Germany Niebuhrstrasse 5, 53113 Bonn, Germany.
Bibliographic data for series maintained by ECONtribute Office ().