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Regression Estimates of the Elasticity of Taxable Income and the Choice of Instrument

Appendix A: Regression Estimates for US Tax Reforms

Table 9: Regression Estimates for US Tax Reforms
Tax Reform MTR
change
Range of estimates
A: Regressions B: Other
Low High Low High
Goolsbee (1999)
1924-25 0.54 0.62 0.67 1.24
1932 0.21 0.27 0.24 0.31
1935 -0.83 -0.50 -0.46 -0.11
1935 (high income) -0.59 0.28
1950-51 0.10 0.17 0.03 0.44
1964 0.00 0.04 -0.22 0.08
1971-72 (high income) -0.19 0.22
1985-86 0.88 1.15 0.22 2.07
Saez et al. (2012)
1981 (top 1% & 9%) - 9%:  0.21 1%: 0.60
1986 (top 1% & 9%) - 9%: -0.20 1%: 1.36
1993 (top 1%) -0.39 0.45
1993 (next 9%) -0.37 0.46 without income controls
1993 (next 9%) -1.67 2.42 with income controls
1993 (next 49%) -1.87 3.35 with or without inc. controls
1960-2006 (top 1%) 0.58 1.71 with time controls
1960-2006 (next 9%) -0.05 0.01 with time controls
Kopczuk (2005)
1980s -1.09 1.38 with or without inc. controls
Auten et al. (2008)
2001 and 2003 0.26 0.67 with income controls
Geirtz (2009)
1990 and 1993 (weighted) -0.34 0.54 with income controls
1990 and 1993 (unweighted) -2.90 0.23 with income controls
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