Empirical studies of tax and benefit incidence routinely ignore behavioral responses and measurement errors. This paper offers an econometric method of estimating the mean benefit withdrawal rate (marginal tax rate) allowing for incentive effects, measurement errors, and correlated latent heterogeneity in incidence. Under the method's identifying assumptions, a feasible instrumental variables estimator corrects for incentive effects and measurement...
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INFORMATION
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2013/08/01
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Document de travail de recherche sur les politiques
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WPS6573
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1
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1
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2013/08/01
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Disclosed
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Benefit incidence with incentive effects, measurement errors and latent heterogeneity
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incentive effect