This chapter reviews the recent developments in the bunching literature, both when
bunching appears in the outcome variable and when it appears in the treatment variable …

How should developing countries tax corporate income? We study this question in Costa
Rica, where firms face higher average tax rates on profits when revenues marginally …

The elasticity of taxable income is vital when predicting the effect of taxes. Bunching at
kinks/notches has been used to estimate this elasticity. We show that when the preference …

How should developing countries tax corporate income? This paper studies this question in
Costa Rica, where firms face discontinuously higher average tax rates on profits when their …

A large literature in empirical public finance relies on “bunching” to identify a behavioral
response to non-linear incentives and to translate this response into an economic object to …

Individual heterogeneity is an important source of variation in demand. Allowing for general
heterogeneity is needed for correct welfare comparisons. We consider general …

This paper studies the bunching identification strategy for an elasticity parameter that
summarizes agents' responses to changes in slope (kink) or intercept (notch) of a schedule …

We study the short-term impact of Connecticut's Jobs First welfare reform experiment on
women's labor supply and welfare participation decisions. A nonparametric optimizing …

Saez (2010) introduced an influential estimator that has become known as the bunching
estimator. Using this method one can get an estimate of the taxable income elasticity from …

Exact consumer's surplus and deadweight loss are the most widely used welfare and
economic efficiency measures. These measures can be computed from demand functions in …