Estimating the perceived tax scale within a labor supply model

The Swedish marginal tax scale is too complex to be known in detail by individuals. This paper indicates that perceived tax scales can be estimated jointly with a labor supply equation. The differences between the true and estimated tax scales are found to be small.

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Bibliographic Details
Published in:Economics letters 1996, Vol.52 (1), p.75-79
Main Authors: Brännäs, Kurt, Karlsson, Niklas
Format: Article
Language:English
Subjects:
Business and economics
Econometrics
Economics
Ekonometri
Ekonomi
Estimation
Labor supply
Labour supply
Nationalekonomi
SAMHÄLLSVETENSKAP
SOCIAL SCIENCES
Sweden
Tax scale
Tax systems
Taxation
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Description
Summary:The Swedish marginal tax scale is too complex to be known in detail by individuals. This paper indicates that perceived tax scales can be estimated jointly with a labor supply equation. The differences between the true and estimated tax scales are found to be small.
ISSN:0165-1765
1873-7374
1873-7374
DOI:10.1016/0165-1765(96)00846-4