notch_equation

Defines indifference condition based on parametric utility function in notch setting. Used to parametrically solve for elasticity.

Implementation of the bunching estimator for kinks and notches.
Allows for flexible estimation of counterfactual (e.g. controlling for round number bunching, accounting for other bunching masses within bunching window, fixing bunching point to be minimum, maximum or median value in its bin, etc.).
It produces publication-ready plots in the style followed since Chetty et al. (2011) <doi:10.1093/qje/qjr013>, with lots of functionality to set plot options.

Panos Mavrokonstantis

bunching

Estimate Bunching

notch_equation function

<dl><dt>e</dt>
<dd>elasticity.</dd>
<dt>t0</dt>
<dd>numeric value setting the marginal (average) tax rate below zstar in a kink (notch) setting.</dd>
<dt>t1</dt>
<dd>numeric value setting the marginal (average) tax rate above zstar in a kink (notch) setting.</dd>
<dt>zstar</dt>
<dd>a numeric value for the the bunching point.</dd>
<dt>dzstar</dt>
<dd>The distance of the marginal buncher from zstar.</dd></dl>

Arguments

Notch Equation — notch_equation

<dl>

<dt>e</dt>
<dd>elasticity.</dd>


<dt>t0</dt>
<dd>numeric value setting the marginal (average) tax rate below zstar in a kink (notch) setting.</dd>


<dt>t1</dt>
<dd>numeric value setting the marginal (average) tax rate above zstar in a kink (notch) setting.</dd>


<dt>zstar</dt>
<dd>a numeric value for the the bunching point.</dd>


<dt>dzstar</dt>
<dd>The distance of the marginal buncher from zstar.</dd>

</dl>

notch_equation: Notch Equation

Description

Usage

Value

Arguments

See Also

Examples