Marginal Tax Rates and Wishful Thinking - DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate

**berdyanskdotsu** · 05-22-2012, 07:21 AM

1) this result is broadly inconsistent with the saez paper, which found a high income elasticity of 0.57. Even if she disagrees with the result, romer should have mentioned the paper, as it is by far the most on point recent paper (and given any objections she has or any story she wants to tell to try to reconcile the two)
2) as always, this is a short term estimate of elasticity. Longer term estimates are likely to be substantially higher (e.g. Euroland vs the US).

**iouiyyut** · 05-22-2012, 04:14 PM

Who cares about short-term estimates of elasticity? How would that possibly be a useful or interesting number?

05-22-2012, 07:21 AM	#1
berdyanskdotsu Join Date Oct 2005 Posts 428 Senior Member	Marginal Tax Rates and Wishful Thinking 1) this result is broadly inconsistent with the saez paper, which found a high income elasticity of 0.57. Even if she disagrees with the result, romer should have mentioned the paper, as it is by far the most on point recent paper (and given any objections she has or any story she wants to tell to try to reconcile the two) 2) as always, this is a short term estimate of elasticity. Longer term estimates are likely to be substantially higher (e.g. Euroland vs the US). Share Share this post on Digg Del.icio.us Technorati Twitter
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05-22-2012, 04:14 PM	#2
iouiyyut Join Date Oct 2005 Posts 428 Senior Member	Who cares about short-term estimates of elasticity? How would that possibly be a useful or interesting number? Share Share this post on Digg Del.icio.us Technorati Twitter
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