The model currently only allows a scalar for the elasticity of taxable income parameters, inc_elast. We should generalize so the elasticity can vary over income, z.
Gruber and Saez (2002) provide estimates of the elasticity of taxable income at different points in the income distribution, which can be helpful in informing a default calibration with non-constant elasticities.
jdebacker
commented
9 months ago
The model currently only allows a scalar for the elasticity of taxable income parameters,
inc_elast. We should generalize so the elasticity can vary over income,z.Gruber and Saez (2002) provide estimates of the elasticity of taxable income at different points in the income distribution, which can be helpful in informing a default calibration with non-constant elasticities.