Skip to content

Journal Article

Trends and gradients in top tax elasticities: cross-country evidence, 1900-2014

Authors

Publication date

Jun 2019

Summary

We construct a cross-country dataset spanning 1900–2014 to estimate the tax elasticity of top incomes. Our results show that top tax elasticities vary tremendously over time; they were medium to low before 1950, dropped to almost zero during the postwar era and increased to unprecedented levels since 1980.We document a marked income gradient of increasing tax responsiveness at the top. Tax avoidance, especially income shifting between wage and capital income, appears to be one important driver of these patterns. Wars, financial crises, and country-specific effects and trends also have a bearing on top elasticities.

Published in

International Tax and Public Finance

Volume and page numbers

26 , 457 -485

DOI

https://doi.org/10.1007/s10797-018-9524-1

ISSN

16

Subjects

Economics, Income Dynamics, and Taxation

Links

University of Essex, Albert Sloman Library Periodicals *restricted to University of Essex registered users* - http://serlib0.essex.ac.uk/record=b1617625~S5


Related publications

  1. Trends and gradients in top tax elasticities: cross-country evidence, 1900-2014

    Enrico Rubolino and Daniel Waldenström

    1. Economics
    2. Income Dynamics
    3. Taxation
  2. Trends and gradients in top tax elasticities: cross-country evidence, 1900-2014

    Enrico Rubolino and Daniel Waldenström

    1. Economics
    2. Income Dynamics
    3. Taxation

#525524


Research home

Research home

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest