January 2021

Bunching estimation of elasticities using Stata

Marinho Bertanha, Andrew H. McCallum, Alexis Payne, and Nathan Seegert


A precise distribution of agents that face a piecewise-linear schedule of incentives results in a distribution of responses sms lån på minuttet mass facets positioned the attach the slope (kink) or intercept (notch) of the schedule modifications. Bunching suggestions use these mass facets to estimate an elasticity parameter, which summarizes agents’ responses to incentives. This text introduces the deliver bunching, which implements sleek non-parametric and semi-parametric identification suggestions for estimating elasticities developed by Bertanha et al. (2021). These suggestions count on weaker assumptions than currently made in the literature and lead to meaningfully diversified estimates of the elasticity in varied contexts.

DOI: https://doi.org/10.17016/FEDS.2021.006

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January 29, 2021

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