Identifying behavioral responses to tax reforms

Identifying behavioral responses to tax reforms: New insights and a new approach

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Standard

Identifying behavioral responses to tax reforms : New insights and a new approach. / Jakobsen, Katrine Marie; Søgaard, Jakob Egholt.

I: Journal of Public Economics, Bind 212, 104691, 08.2022.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Jakobsen, KM & Søgaard, JE 2022, 'Identifying behavioral responses to tax reforms: New insights and a new approach', Journal of Public Economics, bind 212, 104691. https://doi.org/10.1016/j.jpubeco.2022.104691

APA

Jakobsen, K. M., & Søgaard, J. E. (2022). Identifying behavioral responses to tax reforms: New insights and a new approach. Journal of Public Economics, 212, [104691]. https://doi.org/10.1016/j.jpubeco.2022.104691

Vancouver

Jakobsen KM, Søgaard JE. Identifying behavioral responses to tax reforms: New insights and a new approach. Journal of Public Economics. 2022 aug.;212. 104691. https://doi.org/10.1016/j.jpubeco.2022.104691

Author

Jakobsen, Katrine Marie ; Søgaard, Jakob Egholt. / Identifying behavioral responses to tax reforms : New insights and a new approach. I: Journal of Public Economics. 2022 ; Bind 212.

Bibtex

@article{d179de14ebc04c87abf9624953c902e4,

title = "Identifying behavioral responses to tax reforms: New insights and a new approach",

abstract = "We revisit the identification of behavioral responses to tax reforms and develop a new approach for graphical validation and representation of treatment effects. We show that the standard estimation strategy relies on an assumption of constant trend differentials. In the context of income taxation, this implies that differences in income trends across the income distribution should remain constant in the absence of tax reforms. Similar to pre-trend validation of differences-in-differences studies, we can validate this assumption by comparing the evolution of income in untreated parts of the income distribution. We illustrate our new approach by studying several tax reforms in Denmark. (JEL: C14 H30 J22).",

keywords = "Behavioral responses, Identification, Tax reforms, Validation",

author = "Jakobsen, {Katrine Marie} and S{\o}gaard, {Jakob Egholt}",

note = "Publisher Copyright: {\textcopyright} 2022 The Author(s)",

year = "2022",

month = aug,

doi = "10.1016/j.jpubeco.2022.104691",

language = "English",

volume = "212",

journal = "Journal of Public Economics",

issn = "0047-2727",

publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Identifying behavioral responses to tax reforms

T2 - New insights and a new approach

AU - Jakobsen, Katrine Marie

AU - Søgaard, Jakob Egholt

PY - 2022/8

Y1 - 2022/8

N2 - We revisit the identification of behavioral responses to tax reforms and develop a new approach for graphical validation and representation of treatment effects. We show that the standard estimation strategy relies on an assumption of constant trend differentials. In the context of income taxation, this implies that differences in income trends across the income distribution should remain constant in the absence of tax reforms. Similar to pre-trend validation of differences-in-differences studies, we can validate this assumption by comparing the evolution of income in untreated parts of the income distribution. We illustrate our new approach by studying several tax reforms in Denmark. (JEL: C14 H30 J22).

AB - We revisit the identification of behavioral responses to tax reforms and develop a new approach for graphical validation and representation of treatment effects. We show that the standard estimation strategy relies on an assumption of constant trend differentials. In the context of income taxation, this implies that differences in income trends across the income distribution should remain constant in the absence of tax reforms. Similar to pre-trend validation of differences-in-differences studies, we can validate this assumption by comparing the evolution of income in untreated parts of the income distribution. We illustrate our new approach by studying several tax reforms in Denmark. (JEL: C14 H30 J22).

KW - Behavioral responses

KW - Identification

KW - Tax reforms

KW - Validation

UR - http://www.scopus.com/inward/record.url?scp=85132739196&partnerID=8YFLogxK

U2 - 10.1016/j.jpubeco.2022.104691

DO - 10.1016/j.jpubeco.2022.104691

M3 - Journal article

AN - SCOPUS:85132739196

VL - 212

JO - Journal of Public Economics

JF - Journal of Public Economics

SN - 0047-2727

M1 - 104691

ER -

ID: 314440268

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