How to pronounce“say5”in English
IPA/sæɪ5/
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13:34
a very simple intuition that larger tax changes should generate larger observed elasticities so even if you have an isoelastic utility function where
there's a constant elasticity of let's say5 if I have a 2% tax range nobody's going to bother paying the search cost and reoptimizing to get a new job if I
have a 30% tax change I might see a lot of reoptimization and I might end up estimating a larger elasticity okay so that's the first prediction that we test
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