The Elasticity of Taxable Income: A Meta-Regression Analysis

Abstract The elasticity of taxable income is a key parameter in tax policy analysis. To examine the large variation found literature and broad elasticities, I conduct comprehensive meta-regression analysis using information from 61 studies containing 1,720 estimates. My findings reveal that estimated elasticities are not immutable parameters. They correlated with contextual factors choice empirical specification influences elasticities. Finally, selective reporting bias prevalent, direction depends on whether deductions included base.