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Three Essays In Public Finance, Md Sabbirul Haque

Doctoral Dissertations

The first chapter examines the long-run and short-run elasticity of income with respect to changes in tax rates. The Elasticity of Taxable Income (ETI) is a largely-debated parameter in both research and policy. Despite the growing importance of ETI, the literature has not fully considered the intertemporal impacts of taxation. I expand the literature by estimating short-run and long-run impacts of tax rate changes relying on the most recent estimation method and using appropriate lagged values of income when constructing the predicted net-of-tax rate instruments. The short-run ETI in the baseline specification is 0.69 whereas estimates for the Elasticity of …