The elasticity of taxable income in New Zealand: Evidence from the 1986 tax reform

Alastair Thomas

New Zealand Economic Papers, 2012, vol. 46, issue 2, 159-167

Abstract: This paper uses the 1986 New Zealand tax reform as a ‘natural experiment’ to estimate the elasticity of taxable income for New Zealand. Adopting the methodology of Auten and Carroll (1999), elasticity estimates ranging from 0.34 to 0.52 are obtained. These results imply a significant behavioural response to tax rate changes well in excess of that implied by standard labour supply elasticity estimates, and suggest that the welfare costs of taxation in New Zealand are larger than may have previously been considered.

Date: 2012
References: View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://hdl.handle.net/10.1080/00779954.2012.658203 (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:taf:nzecpp:v:46:y:2012:i:2:p:159-167

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RNZP20

DOI: 10.1080/00779954.2012.658203

Access Statistics for this article

New Zealand Economic Papers is currently edited by Dennis Wesselbaum

More articles in New Zealand Economic Papers from Taylor & Francis Journals
Bibliographic data for series maintained by ().