util_calc

$$u(z,n,elas,t1,t2,Tax,zstar) =$$
$$z * (1 - t1) + [z &gt; zstar] * ((z - zstar)
 * (t2 - t1) - Tax) - n / (1 + (1 / elas)) * (z / n)^(1 + (1 / elas))$$

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

util_calc function

<dl><dt>z</dt>
<dd>Earnings</dd>
<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

Calculating quasi-linear iso-elastic utility — util_calc

<dl>

<dt>z</dt>
<dd>Earnings</dd>


<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>

util_calc: Calculating quasi-linear iso-elastic utility

Description

Usage

Value

Arguments

Examples