The Elasticity of Taxable Income: A Meta-Regression Analysis

The top 1% in international and historical perspective

Carina Neisser

The Economic Journal, 2021, vol. 131, issue 640, 3365-3391

Abstract: The elasticity of taxable income 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.

Date: 2021
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Related works:
Working Paper: 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)
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