Estimating Adjustment Frictions Using Nonlinear Budget Sets: Method and Evidence from the Earnings Test
提出一种利用收入分布聚集于预算集拐点的变化来估计调整成本与收入弹性的方法，并以社会保障收入测试为例，发现有效边际税率变化的短期影响可能被大幅削弱。
We introduce a method for estimating the cost of adjusting earnings, as well as the earnings elasticity with respect to the net-of-tax share. Our method uses information on bunching in the earnings distribution at convex budget set kinks before and after policy-induced changes in the magnitude of the kinks: the larger is the adjustment cost, the smaller is the absolute change in bunching from before to after the policy change. In the context of the Social Security Earnings Test, our results demonstrate that the short-run impact of changes in the effective marginal tax rate can be substantially attenuated.