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Misperceptions of Nonlinear Budget Sets: Evidence from Administrative Tax Data

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NBER2025-02-01 更新2025-03-01 收录
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Budget set kinks are much studied in economics, including in the context of bunching estimators that assume individuals react to the true marginal tax rate. We document that individuals disproportionately left-bunch below kinks in the context of the Social Security Earnings Test. We show that the

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2025-02-01
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