Panel Estimation of Taxable Income Elasticities with Heterogeneity and Endogenous Budget Sets
异质性与内生预算集下应税收入弹性的面板估计
This paper introduces an estimator for the average of heterogeneous elasticities of taxable income (ETI), addressing key econometric challenges posed by nonlinear budget sets. Building on an isoelastic utility framework, we derive a linear-in-logs taxable income specification that incorporates the entire budget set while allowing for individual-specific ETI and productivity growth. To account for endogenous budget sets, we employ panel data and estimate individual-specific…