Tax-Benefit Reforms and Structural Models for Labour Supply

Abstract

A related literature studies the elasticity of taxable income to measure the distortions of taxation (Saez et al., 2012a). However, there is an active debate on whether the elasticity of taxable income is a sufficient statistics to measure the distortions from taxation (Chetty, 2009). The views expressed in this chapter do not necessarily reflect the position of CPB Netherlands