Change LSR calculation to use baseline earnings instead of household market income

PolicyEngine / policyengine-api

PolicyEngine's REST API for computing policy impacts.

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Change LSR calculation to use baseline earnings instead of household market income #1547

Closed nikhilwoodruff closed 1 month ago

nikhilwoodruff commented 1 month ago

Fixes #1542.

anth-volk commented 1 month ago

This PR utilizes a formula from Nikhil to identify baseline earnings, then utilizes that to calculate relative LSR impacts, instead of household_market_income. This prevents possible errors due to the fact that baseline earnings varies from country to country (e.g., the UK doesn't include self-employment income).