Which Elasticity? Estimating the Responsiveness of Taxpayer Reporting Decisions
James Alm () and
Sally Wallace
International Advances in Economic Research, 2007, vol. 13, issue 3, 255-267
Abstract:
In this paper we present estimates of the responses of individuals to marginal tax rates in their reporting of income, using data from individual tax returns for the year 1995. One estimation method is ordinary least squares regression. A second method uses quantile regression, which provides evidence on behavioral responses at different points (or quantiles) in the distribution of income and so is relevant to the question of whether the responses of, say, the rich differ from those at other points in the income distribution. Our results clearly indicate that marginal tax rates affect the reporting decisions of individuals. However, there are significant differences in the marginal tax rate reporting responses for the various types of reported income, there are major differences across income classes, and there are notable differences in the estimated responses across estimation methods. Copyright International Atlantic Economic Society 2007
Keywords: Tax price elasticity; Quantile regression; H20; H30 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://hdl.handle.net/10.1007/s11294-007-9096-9 (text/html)
Access to full text is restricted to subscribers.
Related works:
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:kap:iaecre:v:13:y:2007:i:3:p:255-267:10.1007/s11294-007-9096-9
Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11294
DOI: 10.1007/s11294-007-9096-9
Access Statistics for this article
International Advances in Economic Research is currently edited by Katherine S. Virgo
More articles in International Advances in Economic Research from Springer, International Atlantic Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().