earning_fun

Ability of person (earnings with zero tax)

elasticity of earnings w.r.t.  net-of-tax rate

elas

place of notch/kink (critical earning point)

zstar

For an agent with quasi-linear iso-elastic utility, find the utility
maximizing earning level.

View and analyze data where bunching is expected. Estimate counter-
factual distributions. For earnings data, estimate the compensated
elasticity of earnings w.r.t. the net-of-tax rate.

Itai Trilnick

bunchr

Analyze Bunching in a Kink or Notch Setting

earning_fun function

<dl><dt>n</dt>
<dd>Ability of person (earnings with zero tax)</dd>
<dt>elas</dt>
<dd>elasticity of earnings w.r.t. net-of-tax rate</dd>
<dt>t1</dt>
<dd>Tax rate before notch/kink</dd>
<dt>t2</dt>
<dd>Tax rate after notch/kink</dd>
<dt>Tax</dt>
<dd>height of notch (zero for pure kink)</dd>
<dt>zstar</dt>
<dd>place of notch/kink (critical earning point)</dd></dl>

Arguments

Finding optimal earning under kinked/notched budget set — earning_fun

<dl>

<dt>n</dt>
<dd>Ability of person (earnings with zero tax)</dd>


<dt>elas</dt>
<dd>elasticity of earnings w.r.t. net-of-tax rate</dd>


<dt>t1</dt>
<dd>Tax rate before notch/kink</dd>


<dt>t2</dt>
<dd>Tax rate after notch/kink</dd>


<dt>Tax</dt>
<dd>height of notch (zero for pure kink)</dd>


<dt>zstar</dt>
<dd>place of notch/kink (critical earning point)</dd>

</dl>

earning_fun: Finding optimal earning under kinked/notched budget set

Description

Usage

Value

Arguments

Details

See Also

Examples