This paper estimates taxable income responses using a series of
Danish tax reforms and population-wide administrative data since
1980. The tax variation and data in Denmark makes it possible to
overcome the biases from nontax changes in inequality and mean
reversion that plague the existing literature. We provide compelling
graphical evidence of taxable income responses, arguably representing the first nonparametrically identified evidence of taxable income elasticities using tax reforms. We also present panel regression evidence that is extremely robust to specification, unlike previous results which have been very sensitive.
Kleven, Henrik Jacobsen, and Esben Anton Schultz.
"Estimating Taxable Income Responses Using Danish Tax Reforms."
American Economic Journal: Economic Policy,
Personal Income, Wealth, and Their Distributions
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Fiscal Policies and Behavior of Economic Agents: Household
Time Allocation and Labor Supply