matthewolckers / lis-tax-transfer

Extract tax and transfer data from the Luxembourg Income Study (LIS) database of household surveys.
MIT License
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Formal changes + display change #10

Closed victoramoureux closed 6 years ago

victoramoureux commented 6 years ago
matthewolckers commented 6 years ago

I am concerned that we subtract hxits twice when generating inc6 because hxits is part of tax. We are also subtracting hsscer twice when generating inc5. This is because: tax = hxit + hsscer and hxit = hxiti + hxits @victoramoureux what am I missing?

victoramoureux commented 6 years ago

@matthewolckers I am not 100% sure I see your point but inc6 is defined as follows: gen inc6 = marketincome + allpension + transfer - hsscer - hxits so there is no tax in the definition of inc6 or inc5 right? The confusion may come from the fact I call them inc5 and inc6 but they are not calculated after inc4 (which is inc3 - taxes) : it was just easier for the foreach loops (i in 1/6 is easier to read than i in $incconcept etc.). Put differently, inc6 is just inc4 + hxiti and inc5 is inc4 + hxiti + hxits Maybe I should call them differently, what do you think?

matthewolckers commented 6 years ago

@victoramoureux Ok, I understand now. Yes, the naming is confusing. Please change the naming to something else like inc4_fg and inc4_fn for France Gross and France Net.

victoramoureux commented 6 years ago

Hi @matthewolckers , I've just renamed the variables to inc3_SSER and inc3_SSEE. Names are a bit longer now but less confusing.