Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/316721 
Erscheinungsjahr: 
2025
Schriftenreihe/Nr.: 
IZA Discussion Papers No. 17766
Verlag: 
Institute of Labor Economics (IZA), Bonn
Zusammenfassung: 
We show how tax kinks can be used to estimate the marginal propensity to consume (MPC). Tax kinks create discrete changes in the relationship between taxable income and disposable income, which – under a set of testable assumptions – enables causal identification of the spending response to changes in disposable income. We apply our new approach using administrative data from Denmark. Using a regression kink design (RKD), we estimate a MPC of 0.6 (s.e. 0.1) for taxpayers at the top tax kink. We show theoretically the conditions under which tax kinks provide variation in transitory or permanent income and deduce that the RKD exploits predominately transitory variation in income. Our implementation addresses threats to the research design from manipulation of taxable income through labor supply and other behavioral responses. Our findings inform the targeting of fiscal stimulus and social insurance programs to high income earners.
Schlagwörter: 
marginal propensity to consume
tax kinks
regression-kink-design
JEL: 
E21
H24
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
883.25 kB





Publikationen in EconStor sind urheberrechtlich geschützt.