RePEc: Research Papers in Economics · 2006 · 21 citations · 12 references
Public AffairsEconomicsPublic FinanceLabor EconomicsPublic EconomicsTaxationBehavioral Responses To TaxationHousehold EconomicsOptimal TaxationTax CreditsTax IncentivesBehavioral Taxation ModelsEconomic BehaviorHousehold Income DynamicsMarginal Tax Rate AnalysisMarginal Tax Rate EffectsModel UpdatingTax Credit IncentivesTheory Theory
Economic theory assumes that taxpayers use their true marginal tax rate (MTR) to guide their economic decisions. However, complexity of the personal income tax system implies that taxpayers may incorrectly perceive true marginal prices and incentives.
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John Bound, David A. Jaeger, Regina Baker · Journal of the American Statistical Association · 1995 · 3.7K citations