tag:blogger.com,1999:blog-466799232486538663.post5266254941389809392..comments2024-02-05T20:42:11.880+11:00Comments on Econ Amore: Emmanuel Saez Wins Clark MedalJonathan Boymalhttp://www.blogger.com/profile/16787027333116734519noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-466799232486538663.post-47265923101175689562009-04-28T09:25:00.000+10:002009-04-28T09:25:00.000+10:00"Mr. Saez. . . has also made important contributio..."Mr. Saez. . . has also made important contributions to tax theory, including ... how households behave in response to taxes." It is that work, among others, that explains why we can't use reported income to measure "income inequality."<br />When taxes on capital gains and other sources of high incomes go up, the amount that shows up in the top 1% of tax returns goes down." The work of <br />Saez is somewhat schizophrenic in this respect. If behavioral response matters, then we can't talk about what how much income is reported at the top as if it was unrelated to marginal tax rates. That's all I ever said, and Saez has said it too (except when responding to me).<br /><br />areynolds@cato.orgRobinhttps://www.blogger.com/profile/02554173959495030805noreply@blogger.com