Template-Type: ReDIF-Paper 1.0
Author-Name:  Carina Neisser
Author-Name-First: Carina
Author-Name-Last: Neisser
Author-Email: neisser@wiso.uni-koeln.de
Author-Workplace-Name: University of Cologne and IZA Bonn

Title:   The Elasticity of Taxable Income: A Meta-Regression Analysis
Abstract: The elasticity of taxable income (ETI) is a key parameter in tax policy analysis. To examine the large variation found in the literature of taxable and broad income elasticities, I conduct a comprehensive meta-regression analysis using information from 61 studies containing 1,720 estimates. My findings reveal that estimated elasticities are not immutable parameters. They are correlated with contextual factors and the choice of the empirical specification influences the estimated elasticities. Finally, selective reporting bias is prevalent, and the direction of bias depends on whether deductions are included in the tax base. 
Length: 67 pages
Classification-JEL: C81, H24, H26
Keywords: elasticity of taxable income; income tax; behavioural response; meta-regression analysis

Creation-Date:  2021-02
File-URL: https://www.econtribute.de/RePEc/ajk/ajkdps/ECONtribute_067_2021.pdf
File-Format: Application/pdf
File-Function: First version, 2021
Number: 067
Handle: RePEc:ajk:ajkdps:067