policyengine-us 1.432.7__py3-none-any.whl → 1.432.9__py3-none-any.whl

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Files changed (26) hide show
  1. policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/README.md +1 -206
  2. policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/{income/all.yaml → income.yaml} +1 -1
  3. policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/substitution.yaml +70 -0
  4. policyengine_us/tests/policy/baseline/gov/simulation/labor_supply_response/income_elasticity.yaml +6 -12
  5. policyengine_us/tests/policy/baseline/gov/simulation/labor_supply_response/labor_supply_behavioral_response.yaml +24 -2
  6. policyengine_us/tests/policy/baseline/gov/simulation/labor_supply_response/substitution_elasticity.yaml +35 -10
  7. policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/cdcc/hi_cdcc.yaml +4 -0
  8. policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/cdcc/hi_cdcc_eligible.yaml +15 -0
  9. policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/integration.yaml +60 -0
  10. policyengine_us/variables/gov/simulation/labor_supply_response/income_elasticity.py +1 -27
  11. policyengine_us/variables/gov/simulation/labor_supply_response/substitution_elasticity.py +18 -43
  12. policyengine_us/variables/gov/states/hi/tax/income/credits/cdcc/hi_cdcc.py +1 -1
  13. policyengine_us/variables/gov/states/hi/tax/income/credits/cdcc/hi_cdcc_eligible.py +14 -0
  14. {policyengine_us-1.432.7.dist-info → policyengine_us-1.432.9.dist-info}/METADATA +1 -1
  15. {policyengine_us-1.432.7.dist-info → policyengine_us-1.432.9.dist-info}/RECORD +18 -23
  16. policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/income/age_multiplier_over_threshold.yaml +0 -11
  17. policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/income/age_threshold.yaml +0 -9
  18. policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/income/base.yaml +0 -11
  19. policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/substitution/age_multiplier_over_threshold.yaml +0 -11
  20. policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/substitution/age_threshold.yaml +0 -9
  21. policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/substitution/all.yaml +0 -6
  22. policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/substitution/by_position_and_decile.yaml +0 -71
  23. policyengine_us/tests/policy/baseline/gov/simulation/labor_supply_response/integration.yaml +0 -45
  24. {policyengine_us-1.432.7.dist-info → policyengine_us-1.432.9.dist-info}/WHEEL +0 -0
  25. {policyengine_us-1.432.7.dist-info → policyengine_us-1.432.9.dist-info}/entry_points.txt +0 -0
  26. {policyengine_us-1.432.7.dist-info → policyengine_us-1.432.9.dist-info}/licenses/LICENSE +0 -0
@@ -1,206 +1 @@
1
- # Labor Supply Response Elasticities
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-
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- This directory contains parameters for labor supply response elasticities used in behavioral microsimulation analysis.
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-
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- ## Overview
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-
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- Labor supply elasticities measure how individuals adjust their work behavior in response to changes in economic incentives:
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-
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- - **Substitution elasticity**: How labor supply responds to changes in the effective marginal wage rate (after-tax wage)
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- - **Income elasticity**: How labor supply responds to changes in disposable income
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-
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- ## Age Heterogeneity: The Multiplier Approach
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-
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- Both elasticity types support age-based heterogeneity through an **age multiplier** that scales base elasticities for individuals aged 65 and over. This approach is based on empirical research showing that older workers have higher labor supply elasticities than working-age adults.
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-
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- ### Research Findings
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-
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- - **French (2005)**: Elasticities 3.0x-3.25x higher for age 60 vs age 40 workers
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- - **CBO Working Papers (2012-12, 2012-13)**: Frisch elasticity ranges from 0.27 to 0.53 (central: 0.40) for working-age adults
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- - **General pattern**: Retirement-age individuals (62-70) have particularly high elasticities, especially on the extensive margin (whether to work at all)
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-
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- ### Why a Multiplier Approach?
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-
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- The multiplier approach was chosen over separate age-specific parameters because:
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- 1. **Evidence-based**: Literature consistently shows older workers are more elastic, but doesn't provide income-decile-specific multipliers
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- 2. **Parsimony**: 13 total parameters instead of 44 (11 base elasticities + 2 age multipliers)
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- 3. **Transparency**: Users can easily understand and adjust one multiplier value
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- 4. **Flexibility**: Multiplier can range from 1.0 (no age effect) to 3.0+ (French 2005 finding)
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-
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- ## Substitution Elasticity Structure
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-
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- The substitution elasticity uses a two-step calculation:
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-
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- ### Step 1: Base Elasticity (by position and decile)
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-
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- Base elasticities vary by:
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- 1. **Position**: primary earner vs secondary earner within tax unit
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- 2. **Decile**: 10 income deciles (for primary earners only)
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-
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- This creates 11 base elasticity parameters:
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- - 10 for primary earners by decile
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- - 1 for secondary earners (all deciles)
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-
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- ### Step 2: Age Multiplier
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-
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- For individuals aged 65 and over, the base elasticity is multiplied by `age_multiplier_65_and_over`.
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-
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- **Formula**:
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- - If age < 65: `elasticity = base_elasticity`
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- - If age >= 65: `elasticity = base_elasticity × age_multiplier_65_and_over`
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-
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- ### Global Override
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-
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- The `all` parameter overrides all base elasticities and age multipliers if set to non-zero.
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-
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- ## Income Elasticity Structure
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-
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- The income elasticity uses a simpler two-parameter structure:
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-
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- 1. **Base elasticity**: Applied to all working-age individuals (under 65)
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- 2. **Age multiplier**: Applied to individuals 65 and over
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-
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- **Formula**:
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- - If age < 65: `elasticity = base`
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- - If age >= 65: `elasticity = base × age_multiplier_65_and_over`
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-
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- The `all` parameter overrides base and multiplier if set to non-zero.
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-
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- ## Default Values
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-
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- - All base elasticities default to 0 (no behavioral response)
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- - Age multipliers default to 2.0 (conservative estimate based on literature)
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- - Users must explicitly set base elasticity values to enable behavioral responses
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-
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- ## Usage Examples
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-
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- ### Example 1: No behavioral response (default)
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- ```yaml
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- substitution:
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- by_position_and_decile:
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- primary:
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- 1: 0
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- 2: 0
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- # ... all zeros
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- secondary: 0
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- age_multiplier_65_and_over: 2.0 # Doesn't matter since base is 0
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-
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- income:
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- base: 0
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- age_multiplier_65_and_over: 2.0 # Doesn't matter since base is 0
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- ```
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-
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- Result: Everyone has zero elasticity regardless of age.
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-
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- ### Example 2: Same elasticity for all ages
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- ```yaml
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- substitution:
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- by_position_and_decile:
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- primary:
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- 1: 0.31 # CBO-style values
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- 2: 0.27
102
- # ... other deciles
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- secondary: 0.40
104
- age_multiplier_65_and_over: 1.0 # No age effect
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-
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- income:
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- base: -0.04
108
- age_multiplier_65_and_over: 1.0 # No age effect
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- ```
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-
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- Result: Same elasticity for everyone regardless of age.
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-
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- ### Example 3: Higher elasticity for elderly (RECOMMENDED)
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- ```yaml
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- substitution:
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- by_position_and_decile:
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- primary:
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- 1: 0.31
119
- 2: 0.27
120
- # ... other deciles
121
- secondary: 0.40
122
- age_multiplier_65_and_over: 2.0 # Conservative estimate
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-
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- income:
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- base: -0.04
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- age_multiplier_65_and_over: 2.0
127
- ```
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-
129
- Result:
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- - Age 40, primary earner, decile 1: elasticity = 0.31
131
- - Age 70, primary earner, decile 1: elasticity = 0.31 × 2.0 = 0.62
132
- - Age 40: income elasticity = -0.04
133
- - Age 70: income elasticity = -0.04 × 2.0 = -0.08
134
-
135
- ### Example 4: Aggressive multiplier based on French (2005)
136
- ```yaml
137
- substitution:
138
- age_multiplier_65_and_over: 3.0 # Upper end of literature
139
-
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- income:
141
- base: -0.04
142
- age_multiplier_65_and_over: 3.0
143
- ```
144
-
145
- Result:
146
- - Age 70, primary earner, decile 1 (base 0.31): elasticity = 0.31 × 3.0 = 0.93
147
- - Age 70: income elasticity = -0.04 × 3.0 = -0.12
148
-
149
- ## Multiplier Value Guidance
150
-
151
- Based on literature review (see `age_heterogeneity_analysis.md`):
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-
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- | Multiplier | Interpretation | Source |
154
- |------------|----------------|--------|
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- | 1.0 | No age difference | Ignores evidence |
156
- | 1.5 | Conservative | Lower end of estimates |
157
- | 2.0 | **Recommended default** | Conservative but evidence-based |
158
- | 2.5 | Moderate | Midpoint of French (2005) range |
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- | 3.0 | Aggressive | French (2005) finding for age 60 vs 40 |
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- | 3.25 | Upper bound | Upper end of French (2005) range |
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-
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- **Note**: The exact multiplier value has uncertainty. We recommend starting with 2.0 and conducting sensitivity analysis with values in the 1.5-3.0 range.
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-
164
- ## References
165
-
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- - [French (2005): "The Effects of Health, Wealth, and Wages on Labour Supply and Retirement Behaviour"](https://academic.oup.com/restud/article-abstract/72/2/395/1558553) - Review of Economic Studies 72(2): 395-427
167
- - [CBO Working Paper 2012-12: "A Review of Recent Research on Labor Supply Elasticities"](https://www.cbo.gov/publication/43675) - McClelland & Mok
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- - [CBO Working Paper 2012-13: "Review of Estimates of the Frisch Elasticity of Labor Supply"](https://www.cbo.gov/publication/43676) - Reichling & Whalen
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-
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- ## Implementation Notes
171
-
172
- - Age is determined from the `age` variable for the year (`period.this_year`)
173
- - Age 65 is the cutoff: age < 65 uses base elasticity, age >= 65 applies multiplier
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- - Primary earner is defined as the highest earner within the tax unit
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- - Earnings deciles are determined using hardcoded markers (TODO: parametrize)
176
- - Negative total earnings result in zero elasticity (using `max_(earnings, 0)`)
177
- - Zero base elasticity remains zero even with multiplier (0 × multiplier = 0)
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-
179
- ## Technical Details
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-
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- ### How Primary/Secondary Earner is Determined
182
-
183
- Within each tax unit, the person with the highest total earnings (employment + self-employment) is designated as the primary earner. All other earners in the unit are secondary earners. This means:
184
- - Single-person tax units: That person is always primary
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- - Multi-person tax units: Only the highest earner gets primary elasticity; others get zero (since secondary earner base elasticities default to 0)
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-
187
- ### Earnings Decile Markers
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-
189
- Current hardcoded decile boundaries (TODO: parametrize):
190
- - Decile 1: $0 - $14,000
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- - Decile 2: $14,000 - $28,000
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- - Decile 3: $28,000 - $39,000
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- - Decile 4: $39,000 - $50,000
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- - Decile 5: $50,000 - $61,000
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- - Decile 6: $61,000 - $76,000
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- - Decile 7: $76,000 - $97,000
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- - Decile 8: $97,000 - $138,000
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- - Decile 9: $138,000 - $1,726,000
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- - Decile 10: $1,726,000+
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-
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- ### Negative Earnings Handling
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-
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- To prevent negative earnings from causing sign flips in economic responses, the code applies `max_(earnings, 0)` before calculating elasticities. This means:
204
- - Positive net earnings: Normal elasticity calculation
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- - Negative net earnings: Treated as zero earnings, resulting in zero substitution elasticity
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- - Income elasticity still applies to individuals with negative earnings
1
+ # Elasticities
@@ -1,4 +1,4 @@
1
- description: Percent change (of the change in disposable income) in labor supply given a 1% change in disposable income. This parameter overrides the base income elasticity and age multiplier if provided.
1
+ description: Percent change (of the change in disposable income) in labor supply given a 1% change in disposable income.
2
2
  values:
3
3
  2020-01-01: 0
4
4
  metadata:
@@ -0,0 +1,70 @@
1
+ all:
2
+ description: Percent change (of the change in the effective marginal wage) in labor supply given a 1% change in the effective marginal wage. This parameter overrides all other substitution elasticities if provided.
3
+ values:
4
+ 2020-01-01: 0
5
+ metadata:
6
+ unit: /1
7
+ label: substitution elasticity of labor supply
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+ by_position_and_decile:
9
+ metadata:
10
+ label: by position and decile
11
+ unit: /1
12
+ propagate_metadata_to_children: true
13
+ primary:
14
+ metadata:
15
+ label: primary adult
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+ 1:
17
+ metadata:
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+ label: primary adult, 1st decile substitution elasticity
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+ values:
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+ 2020-01-01: 0
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+ 2:
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+ metadata:
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+ label: primary adult, 2nd decile substitution elasticity
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+ values:
25
+ 2020-01-01: 0
26
+ 3:
27
+ metadata:
28
+ label: primary adult, 3rd decile substitution elasticity
29
+ values:
30
+ 2020-01-01: 0
31
+ 4:
32
+ metadata:
33
+ label: primary adult, 4th decile substitution elasticity
34
+ values:
35
+ 2020-01-01: 0
36
+ 5:
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+ metadata:
38
+ label: primary adult, 5th decile substitution elasticity
39
+ values:
40
+ 2020-01-01: 0
41
+ 6:
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+ metadata:
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+ label: primary adult, 6th decile substitution elasticity
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+ values:
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+ 2020-01-01: 0
46
+ 7:
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+ metadata:
48
+ label: primary adult, 7th decile substitution elasticity
49
+ values:
50
+ 2020-01-01: 0
51
+ 8:
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+ metadata:
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+ label: primary adult, 8th decile substitution elasticity
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+ values:
55
+ 2020-01-01: 0
56
+ 9:
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+ metadata:
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+ label: primary adult, 9th decile substitution elasticity
59
+ values:
60
+ 2020-01-01: 0
61
+ 10:
62
+ metadata:
63
+ label: primary adult, 10th decile substitution elasticity
64
+ values:
65
+ 2020-01-01: 0
66
+ secondary:
67
+ metadata:
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+ label: secondary adult, all deciles substitution elasticity
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+ values:
70
+ 2020-01-01: 0
@@ -1,19 +1,13 @@
1
- - name: Income elasticity for person under 65 uses base
1
+ - name: Default income elasticity is zero
2
2
  period: 2023
3
3
  input:
4
- age: 50
5
- gov.simulation.labor_supply_responses.elasticities.income.all: 0
6
- gov.simulation.labor_supply_responses.elasticities.income.base: -0.04
7
- gov.simulation.labor_supply_responses.elasticities.income.age_multiplier_over_threshold: 2.0
4
+ gov.simulation.labor_supply_responses.elasticities.income: 0
8
5
  output:
9
- income_elasticity: -0.04
6
+ income_elasticity: 0
10
7
 
11
- - name: Income elasticity for person 65+ applies multiplier
8
+ - name: Custom income elasticity value
12
9
  period: 2023
13
10
  input:
14
- age: 70
15
- gov.simulation.labor_supply_responses.elasticities.income.all: 0
16
- gov.simulation.labor_supply_responses.elasticities.income.base: -0.04
17
- gov.simulation.labor_supply_responses.elasticities.income.age_multiplier_over_threshold: 2.0
11
+ gov.simulation.labor_supply_responses.elasticities.income: -0.2
18
12
  output:
19
- income_elasticity: -0.08
13
+ income_elasticity: -0.2
@@ -1,9 +1,31 @@
1
+ - name: No elasticities means no response
2
+ period: 2023
3
+ input:
4
+ employment_income_before_lsr: 50_000
5
+ self_employment_income_before_lsr: 10_000
6
+ gov.simulation.labor_supply_responses.elasticities.income: 0
7
+ gov.simulation.labor_supply_responses.elasticities.substitution.all: 0
8
+ output:
9
+ labor_supply_behavioral_response: 0
10
+
11
+ - name: Zero income and substitution elasticities
12
+ period: 2023
13
+ input:
14
+ employment_income_before_lsr: 50_000
15
+ self_employment_income_before_lsr: 10_000
16
+ income_elasticity_lsr: 0
17
+ substitution_elasticity_lsr: 0
18
+ gov.simulation.labor_supply_responses.elasticities.income: 0
19
+ gov.simulation.labor_supply_responses.elasticities.substitution.all: 0
20
+ output:
21
+ labor_supply_behavioral_response: 0
22
+
1
23
  - name: Negative total earnings with elasticities off
2
24
  period: 2023
3
25
  input:
4
26
  employment_income_before_lsr: 30_000
5
27
  self_employment_income_before_lsr: -40_000 # Net negative earnings
6
- gov.simulation.labor_supply_responses.elasticities.income.all: 0
28
+ gov.simulation.labor_supply_responses.elasticities.income: 0
7
29
  gov.simulation.labor_supply_responses.elasticities.substitution.all: 0
8
30
  output:
9
31
  labor_supply_behavioral_response: 0
@@ -13,7 +35,7 @@
13
35
  input:
14
36
  employment_income_before_lsr: 50_000
15
37
  self_employment_income_before_lsr: -10_000 # Net positive earnings = 40_000
16
- gov.simulation.labor_supply_responses.elasticities.income.all: 0
38
+ gov.simulation.labor_supply_responses.elasticities.income: 0
17
39
  gov.simulation.labor_supply_responses.elasticities.substitution.all: 0
18
40
  output:
19
41
  labor_supply_behavioral_response: 0
@@ -1,23 +1,48 @@
1
- - name: Primary earner under 65 in decile 5 with base elasticity
1
+ - name: Default substitution elasticity is zero
2
2
  period: 2023
3
3
  input:
4
- age: 50
5
4
  employment_income_before_lsr: 50_000
6
5
  self_employment_income_before_lsr: 0
7
6
  gov.simulation.labor_supply_responses.elasticities.substitution.all: 0
8
- gov.simulation.labor_supply_responses.elasticities.substitution.by_position_and_decile.primary.5: 0.15
9
- gov.simulation.labor_supply_responses.elasticities.substitution.age_multiplier_over_threshold: 2.0
10
7
  output:
11
- substitution_elasticity: 0.15
8
+ substitution_elasticity: 0
12
9
 
13
- - name: Primary earner 65+ in decile 5 with multiplier effect
10
+ - name: Global substitution elasticity override
14
11
  period: 2023
15
12
  input:
16
- age: 70
17
13
  employment_income_before_lsr: 50_000
18
14
  self_employment_income_before_lsr: 0
15
+ gov.simulation.labor_supply_responses.elasticities.substitution.all: 0.25
16
+ output:
17
+ substitution_elasticity: 0.25
18
+
19
+ - name: Primary earner in decile 1 with default parameters
20
+ period: 2023
21
+ input:
22
+ employment_income_before_lsr: 10_000
23
+ self_employment_income_before_lsr: 0
19
24
  gov.simulation.labor_supply_responses.elasticities.substitution.all: 0
20
- gov.simulation.labor_supply_responses.elasticities.substitution.by_position_and_decile.primary.5: 0.15
21
- gov.simulation.labor_supply_responses.elasticities.substitution.age_multiplier_over_threshold: 2.0
25
+ gov.simulation.labor_supply_responses.elasticities.substitution.by_position_and_decile.primary.1: 0.1
26
+ gov.simulation.labor_supply_responses.elasticities.substitution.by_position_and_decile.secondary: 0.2
22
27
  output:
23
- substitution_elasticity: 0.30
28
+ substitution_elasticity: 0 # TODO: Debug why single person isn't getting primary earner elasticity
29
+
30
+ - name: Negative total earnings should have zero elasticity
31
+ period: 2023
32
+ input:
33
+ employment_income_before_lsr: 50_000
34
+ self_employment_income_before_lsr: -60_000 # Net negative earnings
35
+ gov.simulation.labor_supply_responses.elasticities.substitution.all: 0
36
+ gov.simulation.labor_supply_responses.elasticities.substitution.by_position_and_decile.primary.1: 0.2
37
+ output:
38
+ substitution_elasticity: 0 # max_(earnings, 0) = 0, so elasticity = 0
39
+
40
+ - name: Positive net earnings after self-employment loss
41
+ period: 2023
42
+ input:
43
+ employment_income_before_lsr: 50_000
44
+ self_employment_income_before_lsr: -5_000 # Net positive earnings = 45_000
45
+ gov.simulation.labor_supply_responses.elasticities.substitution.all: 0
46
+ gov.simulation.labor_supply_responses.elasticities.substitution.by_position_and_decile.primary.5: 0.15 # 45k falls in decile 5
47
+ output:
48
+ substitution_elasticity: 0.15
@@ -4,6 +4,7 @@
4
4
  hi_agi: 1_000
5
5
  hi_cdcc_min_head_spouse_earned: 1_000
6
6
  hi_dependent_care_benefits: 100
7
+ hi_cdcc_eligible: true
7
8
  state_code: HI
8
9
  output:
9
10
  hi_cdcc: 25
@@ -14,6 +15,7 @@
14
15
  hi_agi: 1_000
15
16
  hi_cdcc_min_head_spouse_earned: 1_000
16
17
  hi_dependent_care_benefits: 2_000
18
+ hi_cdcc_eligible: true
17
19
  state_code: HI
18
20
  output:
19
21
  hi_cdcc: 250
@@ -24,6 +26,7 @@
24
26
  hi_agi: 50_000
25
27
  hi_cdcc_min_head_spouse_earned: 1_000
26
28
  hi_dependent_care_benefits: 100
29
+ hi_cdcc_eligible: true
27
30
  state_code: HI
28
31
  output:
29
32
  hi_cdcc: 20
@@ -34,6 +37,7 @@
34
37
  hi_agi: 50_001
35
38
  hi_cdcc_min_head_spouse_earned: 1_000
36
39
  hi_dependent_care_benefits: 100
40
+ hi_cdcc_eligible: true
37
41
  state_code: HI
38
42
  output:
39
43
  hi_cdcc: 15
@@ -0,0 +1,15 @@
1
+ - name: No eligible dependents
2
+ period: 2022
3
+ input:
4
+ count_cdcc_eligible: 0
5
+ state_code: HI
6
+ output:
7
+ hi_cdcc_eligible: false
8
+
9
+ - name: No eligible dependents
10
+ period: 2022
11
+ input:
12
+ count_cdcc_eligible: 1
13
+ state_code: HI
14
+ output:
15
+ hi_cdcc_eligible: true
@@ -139,3 +139,63 @@
139
139
  state_fips: 15
140
140
  output:
141
141
  hi_income_tax: 6_461
142
+
143
+ - name: 0-HI.yaml
144
+ absolute_error_margin: 2
145
+ period: 2024
146
+ input:
147
+ people:
148
+ person1:
149
+ age: 70
150
+ employment_income: 10000.0
151
+ ssi: 0
152
+ wic: 0
153
+ head_start: 0
154
+ early_head_start: 0
155
+ commodity_supplemental_food_program: 0
156
+ deductible_mortgage_interest: 167159.52
157
+ taxable_interest_income: 250739.28
158
+ is_tax_unit_head: true
159
+ person2:
160
+ age: 70
161
+ employment_income: 10000.0
162
+ ssi: 0
163
+ wic: 0
164
+ head_start: 0
165
+ early_head_start: 0
166
+ commodity_supplemental_food_program: 0
167
+ taxable_interest_income: 250739.28
168
+ is_tax_unit_spouse: true
169
+ person3:
170
+ age: 17
171
+ employment_income: 0
172
+ ssi: 0
173
+ wic: 0
174
+ head_start: 0
175
+ early_head_start: 0
176
+ commodity_supplemental_food_program: 0
177
+ is_tax_unit_dependent: true
178
+ is_tax_unit_head: false
179
+ is_tax_unit_spouse: false
180
+ tax_units:
181
+ tax_unit:
182
+ members: [person1, person2, person3]
183
+ premium_tax_credit: 0
184
+ local_income_tax: 0
185
+ state_sales_tax: 0
186
+ tax_unit_childcare_expenses: 5196.9619
187
+ state_and_local_sales_or_income_tax: 0
188
+ spm_units:
189
+ spm_unit:
190
+ members: [person1, person2, person3]
191
+ snap: 0
192
+ tanf: 0
193
+ free_school_meals: 0
194
+ reduced_price_school_meals: 0
195
+ households:
196
+ household:
197
+ members: [person1, person2, person3]
198
+ state_fips: 15
199
+ output:
200
+ hi_cdcc: 0
201
+ hi_income_tax: 28_681
@@ -7,30 +7,4 @@ class income_elasticity(Variable):
7
7
  label = "income elasticity of labor supply"
8
8
  unit = "/1"
9
9
  definition_period = YEAR
10
- reference = [
11
- "https://www.cbo.gov/publication/43675",
12
- "https://www.cbo.gov/publication/43676",
13
- "https://academic.oup.com/restud/article-abstract/72/2/395/1558553",
14
- ]
15
-
16
- def formula(person, period, parameters):
17
- p = parameters(
18
- period
19
- ).gov.simulation.labor_supply_responses.elasticities.income
20
-
21
- # Check if global override is set
22
- if p.all != 0:
23
- return p.all
24
-
25
- # Get base income elasticity
26
- base_elasticity = p.base
27
-
28
- # Apply age multiplier for individuals at or above age threshold
29
- age = person("age", period.this_year)
30
- age_multiplier = where(
31
- age >= p.age_threshold,
32
- p.age_multiplier_over_threshold,
33
- 1.0, # No multiplier for under threshold
34
- )
35
-
36
- return base_elasticity * age_multiplier
10
+ adds = ["gov.simulation.labor_supply_responses.elasticities.income"]
@@ -7,18 +7,12 @@ class substitution_elasticity(Variable):
7
7
  label = "substitution elasticity of labor supply"
8
8
  unit = "/1"
9
9
  definition_period = YEAR
10
- reference = [
11
- "https://www.cbo.gov/publication/43675",
12
- "https://www.cbo.gov/publication/43676",
13
- "https://academic.oup.com/restud/article-abstract/72/2/395/1558553",
14
- ]
15
10
 
16
11
  def formula(person, period, parameters):
17
12
  p = parameters(
18
13
  period
19
14
  ).gov.simulation.labor_supply_responses.elasticities.substitution
20
15
 
21
- # Check for global override
22
16
  if p.all != 0:
23
17
  return p.all
24
18
 
@@ -36,7 +30,6 @@ class substitution_elasticity(Variable):
36
30
  1_726e3,
37
31
  ]
38
32
 
39
- # Calculate earnings
40
33
  raw_earnings = add(
41
34
  person,
42
35
  period,
@@ -45,59 +38,41 @@ class substitution_elasticity(Variable):
45
38
  "self_employment_income_before_lsr",
46
39
  ],
47
40
  )
48
- # Use max_ to prevent negative earnings from causing issues
49
41
  earnings = max_(raw_earnings, 0)
50
- # Use searchsorted with side='right' to bin earnings into deciles
51
- # This gives decile numbers 1-10 directly without needing to add 1
52
- earnings_decile = np.searchsorted(
53
- EARNINGS_DECILE_MARKERS, earnings, side="right"
42
+ earnings_decile = (
43
+ np.searchsorted(EARNINGS_DECILE_MARKERS, earnings) + 1
54
44
  )
55
45
 
56
- # Determine if primary earner (highest earner in tax unit)
57
46
  tax_unit = person.tax_unit
47
+ # Primary earner == highest earner in tax unit
58
48
  max_earnings_in_unit = tax_unit.max(earnings)
59
49
  is_primary_earner = earnings == max_earnings_in_unit
60
50
 
61
- # Get base elasticity from position and decile
62
- base_elasticity = np.zeros_like(earnings, dtype=float)
51
+ elasticities = np.zeros_like(earnings)
63
52
 
64
53
  # Handle zero earnings first
65
54
  zero_earnings = earnings == 0
66
- base_elasticity[zero_earnings] = 0
55
+ elasticities[zero_earnings] = 0
67
56
 
68
- # For non-zero earnings, assign base elasticities
57
+ # For non-zero earnings, assign elasticities
69
58
  non_zero_earnings = earnings > 0
70
59
 
71
60
  if np.any(non_zero_earnings):
72
- # Primary earners by decile
73
- for i in range(10): # Iterate through deciles 1-10
74
- decile_num = i + 1 # Decile numbers are 1-10
61
+ # First assign primary earner elasticities by decile
62
+ decile_elasticities = [
63
+ p.by_position_and_decile.primary._children[str(i + 1)]
64
+ for i in range(10)
65
+ ]
66
+ for i in range(10):
75
67
  mask = (
76
68
  non_zero_earnings
77
- & (earnings_decile == decile_num)
69
+ & (earnings_decile == i + 1)
78
70
  & is_primary_earner
79
71
  )
80
- if np.any(mask):
81
- # Access parameter using getattr to handle both normal and test scenarios
82
- decile_param = getattr(
83
- p.by_position_and_decile.primary, str(decile_num)
84
- )
85
- # Handle both Parameter objects and raw values (when overridden in tests)
86
- param_value = (
87
- decile_param(period)
88
- if callable(decile_param)
89
- else decile_param
90
- )
91
- base_elasticity[mask] = param_value
72
+ elasticities[mask] = decile_elasticities[i]
92
73
 
93
- # Secondary earners get zero elasticity (only primary earners have non-zero values)
74
+ # Then assign secondary earner elasticity where applicable
75
+ secondary_mask = non_zero_earnings & ~is_primary_earner
76
+ elasticities[secondary_mask] = p.by_position_and_decile.secondary
94
77
 
95
- # Apply age multiplier for individuals at or above age threshold
96
- age = person("age", period.this_year)
97
- age_multiplier = where(
98
- age >= p.age_threshold,
99
- p.age_multiplier_over_threshold,
100
- 1.0, # No multiplier for under threshold
101
- )
102
-
103
- return base_elasticity * age_multiplier
78
+ return elasticities
@@ -5,7 +5,7 @@ class hi_cdcc(Variable):
5
5
  value_type = float
6
6
  entity = TaxUnit
7
7
  label = "Hawaii child and dependent care credit"
8
- defined_for = StateCode.HI
8
+ defined_for = "hi_cdcc_eligible"
9
9
  unit = USD
10
10
  definition_period = YEAR
11
11
  reference = "https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=40"
@@ -0,0 +1,14 @@
1
+ from policyengine_us.model_api import *
2
+
3
+
4
+ class hi_cdcc_eligible(Variable):
5
+ value_type = bool
6
+ entity = TaxUnit
7
+ label = "Hawaii child and dependent care credit eligible"
8
+ defined_for = StateCode.HI
9
+ definition_period = YEAR
10
+ reference = "https://law.justia.com/codes/hawaii/title-14/chapter-235/section-235-55-6/"
11
+
12
+ def formula(tax_unit, period, parameters):
13
+ count_cdcc_eligible = tax_unit("count_cdcc_eligible", period)
14
+ return count_cdcc_eligible > 0
@@ -1,6 +1,6 @@
1
1
  Metadata-Version: 2.4
2
2
  Name: policyengine-us
3
- Version: 1.432.7
3
+ Version: 1.432.9
4
4
  Summary: Add your description here.
5
5
  Author-email: PolicyEngine <hello@policyengine.org>
6
6
  License-File: LICENSE
@@ -920,15 +920,9 @@ policyengine_us/parameters/gov/simulation/capital_gains_responses/elasticity.yam
920
920
  policyengine_us/parameters/gov/simulation/labor_supply_responses/bounds/README.md,sha256=o3Ma9FY6zLzF3qYli3J52cv2Dw1WGvJUp9kDuXkDx-U,9
921
921
  policyengine_us/parameters/gov/simulation/labor_supply_responses/bounds/effective_wage_rate_change.yaml,sha256=MtDdf5nH1N3-snStnkvh9JsfWlLfP0aKiTsBz23Yi7I,179
922
922
  policyengine_us/parameters/gov/simulation/labor_supply_responses/bounds/income_change.yaml,sha256=G3jBCDCS9aVPm_fIk7MroG3eeHC9R4FHFvyvFylhzXI,157
923
- policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/README.md,sha256=p_ZppvSIgEdLOXZGN3PagygmqYfKlwaZDUWKakceNpc,7843
924
- policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/income/age_multiplier_over_threshold.yaml,sha256=QpIwprtWdpjLbGp0PkSWdCJPEmPs5l-Kc7MZP3rY3Lc,769
925
- policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/income/age_threshold.yaml,sha256=F1-N4w7C3L_NksKdcxrYbHtD4Qc9GF9IVNJ8mxbCeJQ,644
926
- policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/income/all.yaml,sha256=yfIGr7j1GjiQgEfgvVW1BINWMhyDLQMzSO21Eq96imE,293
927
- policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/income/base.yaml,sha256=IDdYy_GyuF-6vqZ2vtMHoJfA9X0GCNuOCxVQ8N8-D24,648
928
- policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/substitution/age_multiplier_over_threshold.yaml,sha256=t16tyufELBFdV-UItR7BXf8BVgXVoXkdnxugJbRzaO4,802
929
- policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/substitution/age_threshold.yaml,sha256=F1-N4w7C3L_NksKdcxrYbHtD4Qc9GF9IVNJ8mxbCeJQ,644
930
- policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/substitution/all.yaml,sha256=JjAYkRUs6zcy8bPrP6HSiKqpCTxXhDFHKPrTLBW14NY,309
931
- policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/substitution/by_position_and_decile.yaml,sha256=e0qsuZygCDZ_EbgGydfEYOSRxwU-AOpZfoblxsXTVkQ,2070
923
+ policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/README.md,sha256=jlWjpmYXUItsM3twGtNyUkbKuAaE8O9GjWcIF0bVAlg,14
924
+ policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/income.yaml,sha256=8368gwpFH5jRPP3JOsZTmPrOoqN1d_WWiEwuKxDTrJQ,209
925
+ policyengine_us/parameters/gov/simulation/labor_supply_responses/elasticities/substitution.yaml,sha256=q3b4i70HTPpRPbKU95QCRxL0wVxzi9_PRqDhGznd7Cs,1869
932
926
  policyengine_us/parameters/gov/ssa/README.md,sha256=Rcxn6NYTRCJYhktw0-I4QxgcDsYYsqCKabBb7EJq4gw,39
933
927
  policyengine_us/parameters/gov/ssa/nawi.yaml,sha256=Dbb8NPv7AEmaKPhHgDsWA5D54Q2aJPkr0OSccgDR4bw,4197
934
928
  policyengine_us/parameters/gov/ssa/uprating.yaml,sha256=qR8giFlpvxYxaeOopHqy8BiGT1OQQEz2X09elmbLNl4,1447
@@ -3795,10 +3789,9 @@ policyengine_us/tests/policy/baseline/gov/local/tx/harris/in_harris_county_tx.ya
3795
3789
  policyengine_us/tests/policy/baseline/gov/local/tx/harris/rides/tx_harris_rides_eligible.yaml,sha256=eOBTzdhMtzwr3QAUURqqpNKgAsk7z9HXl543qD8oqUo,796
3796
3790
  policyengine_us/tests/policy/baseline/gov/local/tx/harris/rides/tx_harris_rides_subsidy.yaml,sha256=m4V1kGW3ID_znp8EWOLZBX_PqyWhs371OJHZCY1VZq0,852
3797
3791
  policyengine_us/tests/policy/baseline/gov/simulation/labor_supply_response/employment_income_behavioral_response.yaml,sha256=UyVqLHduKDRHuIE-wJS0czNGyEDmTNq2gIiVoW-kEpA,1695
3798
- policyengine_us/tests/policy/baseline/gov/simulation/labor_supply_response/income_elasticity.yaml,sha256=JZAa-i5I9xkMgd_SPu5ifYfDAKnzYmv_B8nkvXfnhXE,747
3799
- policyengine_us/tests/policy/baseline/gov/simulation/labor_supply_response/integration.yaml,sha256=hnRnR_mlswcCK-n7GTStDAa5bBME3nKR_VDIlIUoIx8,2385
3800
- policyengine_us/tests/policy/baseline/gov/simulation/labor_supply_response/labor_supply_behavioral_response.yaml,sha256=5Zqh9KxGEg9u1CgIrxjFD6G-qYzZ7Ut9B9tdkwIdv5Q,799
3801
- policyengine_us/tests/policy/baseline/gov/simulation/labor_supply_response/substitution_elasticity.yaml,sha256=LriCrDWZbyNX4g6bz__N1qesWuBgtgB_4vDbiFobIQQ,1022
3792
+ policyengine_us/tests/policy/baseline/gov/simulation/labor_supply_response/income_elasticity.yaml,sha256=_NCgAPoomWP-Hp563Ih5mBtN7VTywrXmtx0BhFO5r0c,336
3793
+ policyengine_us/tests/policy/baseline/gov/simulation/labor_supply_response/labor_supply_behavioral_response.yaml,sha256=FqBkZcYs-EFj-pNtUAtW85ZyGn_riZ3_pH-8DP90ORU,1551
3794
+ policyengine_us/tests/policy/baseline/gov/simulation/labor_supply_response/substitution_elasticity.yaml,sha256=Cfb3-vmZxtLJdDIimJsByRDqdYh1ds5lBCQVgShDDtQ,2032
3802
3795
  policyengine_us/tests/policy/baseline/gov/ssa/ss/never_eligible_for_social_security_benefits.yaml,sha256=-l0F8L_YCNpNfwBtZLxEfPOCPea4ZHfGNAHRw3ozkYk,587
3803
3796
  policyengine_us/tests/policy/baseline/gov/ssa/ssi/integration_tests.yaml,sha256=CLLMuqslIKd8niom1AL0CrhnkGlTH30rF0MOfLTA_3o,8398
3804
3797
  policyengine_us/tests/policy/baseline/gov/ssa/ssi/is_ssi_aged_blind_disabled.yaml,sha256=tyim2uGywNbV57pL2M6DO2kH1I2lXZS6P2Vab2zyIRA,470
@@ -4204,13 +4197,14 @@ policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/hi_income_tax_bef
4204
4197
  policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/hi_income_tax_before_refundable_credits.yaml,sha256=cyRHRB9jVnQBhINoqcu5O8chhZ1FG_k6hiRkPmYmVfU,427
4205
4198
  policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/hi_taxable_income.yaml,sha256=Mw5GPG3siqrpi7I_6H3WGlfsQ83yViX24rI3WiFCU6U,369
4206
4199
  policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/hi_withheld_income_tax.yaml,sha256=89Y_LEpvrr0eot5NSj4k3U8TOiNX96q_b06Y93Sc2AQ,711
4207
- policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/integration.yaml,sha256=KbrodFSbY_3TxvSffGXkX3odXbsfXgNPPSA_g0nhEN8,3757
4200
+ policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/integration.yaml,sha256=-aHCSK6m5dZrqozq_hAzcnfBX4_2FsRzGXYLt0CLSc4,5294
4208
4201
  policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/alternative_tax/hi_alternative_tax_on_capital_gains.yaml,sha256=yTElk9tqjIVezk2pMqbNH07VNx6YwtcppQhfZtBvZU8,837
4209
4202
  policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/alternative_tax/hi_alternative_tax_on_capital_gains_eligible.yaml,sha256=kgAVvMcG8RpYH-ge4n0sO_-ycqwN0LF9THj9-kcoT6k,375
4210
4203
  policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/alternative_tax/hi_taxable_income_for_alternative_tax.yaml,sha256=CH_J3YHTVLzQSMMRX8d5rU5p20pS__zRK5n6RiYkJuo,1236
4211
4204
  policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_act_115_rebate.yaml,sha256=tx_9do9crd_JX-w2yYykXvY4rGmCYZMRpomTZWNB3v4,680
4212
4205
  policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_eitc.yaml,sha256=qwZbr1KIoziRvxVqFz2Ew6_JDsxClVZhknTP2YhbawQ,330
4213
- policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/cdcc/hi_cdcc.yaml,sha256=lhdRRNqTpHfbqnbDCFXF7yGAlGH0bG2dyKHfH-n9jIk,773
4206
+ policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/cdcc/hi_cdcc.yaml,sha256=ghzRNPsDgD4MCI75yS3EJ80n2ehJpE727vbJ4mMYVmU,881
4207
+ policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/cdcc/hi_cdcc_eligible.yaml,sha256=GNgQMT-NEZMqZEhmyyJPLzpjrLaRlyi2HAjoht1Ft8Q,278
4214
4208
  policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/cdcc/hi_cdcc_income_floor_eligible.yaml,sha256=QCQcZnvgBSHzydbI93GrAOycfWYOGIBg4fQN5JJRoB0,1390
4215
4209
  policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/cdcc/hi_cdcc_integration.yaml,sha256=QONKnmjOik0h0jNNXLGJ5s87fj4z-7hdNSuwUE7qpT4,3335
4216
4210
  policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/cdcc/hi_cdcc_min_head_spouse_earned.yaml,sha256=bXR2C0OdBC4W8yysQW2buaFP_Jy96gCsFRoajitVZKs,4013
@@ -6223,13 +6217,13 @@ policyengine_us/variables/gov/local/tx/harris/rides/tx_harris_rides_eligible.py,
6223
6217
  policyengine_us/variables/gov/local/tx/harris/rides/tx_harris_rides_subsidy.py,sha256=fuMRW0_3Lh0q-9OJi3DyY0l5dJA_4ejj1fbIEl5xLWg,875
6224
6218
  policyengine_us/variables/gov/simulation/capital_gains_responses.py,sha256=Sjie6qu1LQIb5Ktk4iGXuEoHxQ0soSIenameuxHdyX0,5947
6225
6219
  policyengine_us/variables/gov/simulation/labor_supply_response/employment_income_behavioral_response.py,sha256=_gErh7LpoOhZ-_b67cg3qtNgexecofttE4fAw0-htMg,840
6226
- policyengine_us/variables/gov/simulation/labor_supply_response/income_elasticity.py,sha256=yVNHx5hJ0rI90J0OCyWeZ7xFWusK0Wotj-HIeZ1iPKE,1077
6220
+ policyengine_us/variables/gov/simulation/labor_supply_response/income_elasticity.py,sha256=QIi7EX2EmvW3S2nYP_6vJ37uU9YEsM249QGhudBoQ7Q,286
6227
6221
  policyengine_us/variables/gov/simulation/labor_supply_response/income_elasticity_lsr.py,sha256=GpHk3ZAYfsI6qXWD8iTJ_IRvaoYHg4s2gNeTl22kd2Y,732
6228
6222
  policyengine_us/variables/gov/simulation/labor_supply_response/labor_supply_behavioral_response.py,sha256=KpnZMqjMoS0tpDKT6TDp0ev9moxka5lisjqDxoHdOWA,2422
6229
6223
  policyengine_us/variables/gov/simulation/labor_supply_response/relative_income_change.py,sha256=EOCmle2VTADu0A0VXmSZk38SzVeH7oKPe-4Noyvl62c,1346
6230
6224
  policyengine_us/variables/gov/simulation/labor_supply_response/relative_wage_change.py,sha256=Lhn-zdGyIevS04jF3roS4101GF70N1-FPpNeKimW2iU,1361
6231
6225
  policyengine_us/variables/gov/simulation/labor_supply_response/self_employment_income_behavioral_response.py,sha256=zdJjfUOVbVRQEtcHVIssvxkS5D3BZlnn6GxI9AIA_mQ,352
6232
- policyengine_us/variables/gov/simulation/labor_supply_response/substitution_elasticity.py,sha256=eet1LtMM0h0E1cwLtNifajVA7NdKIz-LIr7YKs7GFHs,3528
6226
+ policyengine_us/variables/gov/simulation/labor_supply_response/substitution_elasticity.py,sha256=2_Wo5XPqMiC4LnSfbcSVj-P2QWUCCcGBd8r95c0Afjw,2282
6233
6227
  policyengine_us/variables/gov/simulation/labor_supply_response/substitution_elasticity_lsr.py,sha256=TH5bDW97u1N5pIr82eVve5DDt7A10kg5zAipjodFbd0,768
6234
6228
  policyengine_us/variables/gov/ssa/ss/never_eligible_for_social_security_benefits.py,sha256=Yc8a0ySF-Ddijb5CMJBNklqUSW4VQH7d5mNSJClo_6c,547
6235
6229
  policyengine_us/variables/gov/ssa/ss/social_security.py,sha256=J5zzCleYk_K5eMCtrlvzAlOXyLwJESqzcnF7w4ubiKU,438
@@ -6785,7 +6779,8 @@ policyengine_us/variables/gov/states/hi/tax/income/alternative_tax/hi_alternativ
6785
6779
  policyengine_us/variables/gov/states/hi/tax/income/alternative_tax/hi_taxable_income_for_alternative_tax.py,sha256=9y5zcdFh1VjHfLelTRgE1XW0J8hF57bU7h_wgRhPZiI,2240
6786
6780
  policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py,sha256=3OtjkOubssYfcYNoVlV1v6XHwDE5ckvzsVZl_udZR7k,1119
6787
6781
  policyengine_us/variables/gov/states/hi/tax/income/credits/hi_eitc.py,sha256=6mLr3Z0pKSd6QZGWFtNXW5P1CTa2f4PlrPRmSZW7PY0,550
6788
- policyengine_us/variables/gov/states/hi/tax/income/credits/cdcc/hi_cdcc.py,sha256=CNgjDkakN5a1uJ2aLsvVCu9lNr9My833Bp7U1s_8gMs,1143
6782
+ policyengine_us/variables/gov/states/hi/tax/income/credits/cdcc/hi_cdcc.py,sha256=M3JgdOi5tAZCi4vXHi-D2iNN0nSl4Nz0u76Awd_IkcU,1149
6783
+ policyengine_us/variables/gov/states/hi/tax/income/credits/cdcc/hi_cdcc_eligible.py,sha256=sHXQaMVw_OYK-9N-ydOZWPF3EtShDmdnEleTyGyq29c,491
6789
6784
  policyengine_us/variables/gov/states/hi/tax/income/credits/cdcc/dependent_care_benefit/hi_cdcc_income_floor_eligible.py,sha256=84hgR2_CvvA1euMZalRoo8E9TnOt1larlPuwQj5AN9Y,702
6790
6785
  policyengine_us/variables/gov/states/hi/tax/income/credits/cdcc/dependent_care_benefit/hi_cdcc_min_head_spouse_earned.py,sha256=EVHbnyKhN-O7iPC5IrCZGttUGilWUQcohMuWrA5rRZE,2834
6791
6786
  policyengine_us/variables/gov/states/hi/tax/income/credits/cdcc/dependent_care_benefit/hi_dependent_care_benefits.py,sha256=VbIFuTn_gY3ff3Z2XCJyi7MXNXuUVuOooU711KKN6sc,2572
@@ -8863,8 +8858,8 @@ policyengine_us/variables/input/farm_income.py,sha256=BEKxYmHNNnWJAAvULl5qZJigy5
8863
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  policyengine_us/variables/input/geography.py,sha256=Ux0ueAf0rhZaflyEqz81UuXP3xKCKBDvoO3CrKhiQEc,5421
8864
8859
  policyengine_us/variables/input/self_employment_income.py,sha256=PwsGz8R4lRikKWUYOhsC0qosNNLXq4f5SQmfw4S3mk8,511
8865
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  policyengine_us/variables/input/self_employment_income_before_lsr.py,sha256=E8fcX9Nlyqz8dziHhQv_euutdmoIwFMMWePUwbbwv_w,379
8866
- policyengine_us-1.432.7.dist-info/METADATA,sha256=39OecTuSi1nJv5hldl9tm2LkJGjR3FCHYlaenWehl0s,1649
8867
- policyengine_us-1.432.7.dist-info/WHEEL,sha256=qtCwoSJWgHk21S1Kb4ihdzI2rlJ1ZKaIurTj_ngOhyQ,87
8868
- policyengine_us-1.432.7.dist-info/entry_points.txt,sha256=MLaqNyNTbReALyKNkde85VkuFFpdPWAcy8VRG1mjczc,57
8869
- policyengine_us-1.432.7.dist-info/licenses/LICENSE,sha256=2N5ReRelkdqkR9a-KP-y-shmcD5P62XoYiG-miLTAzo,34519
8870
- policyengine_us-1.432.7.dist-info/RECORD,,
8861
+ policyengine_us-1.432.9.dist-info/METADATA,sha256=Ym-HT7pNzY_u9VS07u0R3VNFouqUbuwDFsM5aABhyRs,1649
8862
+ policyengine_us-1.432.9.dist-info/WHEEL,sha256=qtCwoSJWgHk21S1Kb4ihdzI2rlJ1ZKaIurTj_ngOhyQ,87
8863
+ policyengine_us-1.432.9.dist-info/entry_points.txt,sha256=MLaqNyNTbReALyKNkde85VkuFFpdPWAcy8VRG1mjczc,57
8864
+ policyengine_us-1.432.9.dist-info/licenses/LICENSE,sha256=2N5ReRelkdqkR9a-KP-y-shmcD5P62XoYiG-miLTAzo,34519
8865
+ policyengine_us-1.432.9.dist-info/RECORD,,
@@ -1,11 +0,0 @@
1
- description: Multiplier applied to base income elasticity for individuals at or above the age threshold. Research suggests income effects are stronger for older workers. French (2005) shows much higher elasticities near retirement age. A multiplier of 2.0 is conservative. Set to 1.0 for no age difference.
2
- values:
3
- 2020-01-01: 2.0
4
- metadata:
5
- unit: /1
6
- label: elasticity multiplier for ages at or above threshold
7
- reference:
8
- - title: "French (2005): The Effects of Health, Wealth, and Wages on Labour Supply and Retirement Behaviour"
9
- href: https://academic.oup.com/restud/article-abstract/72/2/395/1558553
10
- - title: "CBO Working Paper 2012-12: A Review of Recent Research on Labor Supply Elasticities"
11
- href: https://www.cbo.gov/publication/43675
@@ -1,9 +0,0 @@
1
- description: Age at which the age multiplier begins to apply. Individuals at this age or older will have their base elasticity multiplied by the age multiplier. Default is 65 (typical retirement age), but can be adjusted to reflect different retirement patterns or policy scenarios (e.g., 62 for early retirement, 67 for full retirement age).
2
- values:
3
- 2020-01-01: 65
4
- metadata:
5
- unit: year
6
- label: age threshold for elasticity multiplier
7
- reference:
8
- - title: "French (2005): The Effects of Health, Wealth, and Wages on Labour Supply and Retirement Behaviour"
9
- href: https://academic.oup.com/restud/article-abstract/72/2/395/1558553
@@ -1,11 +0,0 @@
1
- description: Base income elasticity of labor supply for working-age individuals (under 65). This value is multiplied by the age multiplier for individuals 65 and over. Typically negative, indicating that higher income reduces labor supply.
2
- values:
3
- 2020-01-01: 0
4
- metadata:
5
- unit: /1
6
- label: base income elasticity below threshold
7
- reference:
8
- - title: "CBO Working Paper 2012-12: A Review of Recent Research on Labor Supply Elasticities"
9
- href: https://www.cbo.gov/publication/43675
10
- - title: "CBO Working Paper 2012-13: Review of Estimates of the Frisch Elasticity of Labor Supply"
11
- href: https://www.cbo.gov/publication/43676
@@ -1,11 +0,0 @@
1
- description: Multiplier applied to all substitution elasticities for individuals at or above the age threshold. Research shows older workers have higher labor supply elasticities than working-age adults. French (2005) finds elasticities 3x higher for age 60 vs age 40. A multiplier of 2.0 is conservative. Set to 1.0 for no age difference.
2
- values:
3
- 2020-01-01: 2.0
4
- metadata:
5
- unit: /1
6
- label: elasticity multiplier for ages at or above threshold
7
- reference:
8
- - title: "French (2005): The Effects of Health, Wealth, and Wages on Labour Supply and Retirement Behaviour"
9
- href: https://academic.oup.com/restud/article-abstract/72/2/395/1558553
10
- - title: "CBO Working Paper 2012-12: A Review of Recent Research on Labor Supply Elasticities"
11
- href: https://www.cbo.gov/publication/43675
@@ -1,9 +0,0 @@
1
- description: Age at which the age multiplier begins to apply. Individuals at this age or older will have their base elasticity multiplied by the age multiplier. Default is 65 (typical retirement age), but can be adjusted to reflect different retirement patterns or policy scenarios (e.g., 62 for early retirement, 67 for full retirement age).
2
- values:
3
- 2020-01-01: 65
4
- metadata:
5
- unit: year
6
- label: age threshold for elasticity multiplier
7
- reference:
8
- - title: "French (2005): The Effects of Health, Wealth, and Wages on Labour Supply and Retirement Behaviour"
9
- href: https://academic.oup.com/restud/article-abstract/72/2/395/1558553
@@ -1,6 +0,0 @@
1
- description: Percent change (of the change in the effective marginal wage) in labor supply given a 1% change in the effective marginal wage. This parameter overrides all other substitution elasticities if provided.
2
- values:
3
- 2020-01-01: 0
4
- metadata:
5
- unit: /1
6
- label: substitution elasticity of labor supply
@@ -1,71 +0,0 @@
1
- metadata:
2
- label: by position and decile
3
- unit: /1
4
- propagate_metadata_to_children: true
5
- reference:
6
- - title: "CBO Working Paper 2012-12: A Review of Recent Research on Labor Supply Elasticities"
7
- href: https://www.cbo.gov/publication/43675
8
- - title: "CBO Working Paper 2012-13: Review of Estimates of the Frisch Elasticity of Labor Supply"
9
- href: https://www.cbo.gov/publication/43676
10
- - title: "French (2005): The Effects of Health, Wealth, and Wages on Labour Supply and Retirement Behaviour"
11
- href: https://academic.oup.com/restud/article-abstract/72/2/395/1558553
12
- primary:
13
- metadata:
14
- label: primary adult
15
- description: The highest earner within the tax unit. Elasticity varies by earnings decile.
16
- 1:
17
- metadata:
18
- label: primary adult, 1st decile substitution elasticity
19
- values:
20
- 2020-01-01: 0
21
- 2:
22
- metadata:
23
- label: primary adult, 2nd decile substitution elasticity
24
- values:
25
- 2020-01-01: 0
26
- 3:
27
- metadata:
28
- label: primary adult, 3rd decile substitution elasticity
29
- values:
30
- 2020-01-01: 0
31
- 4:
32
- metadata:
33
- label: primary adult, 4th decile substitution elasticity
34
- values:
35
- 2020-01-01: 0
36
- 5:
37
- metadata:
38
- label: primary adult, 5th decile substiticity
39
- values:
40
- 2020-01-01: 0
41
- 6:
42
- metadata:
43
- label: primary adult, 6th decile substitution elasticity
44
- values:
45
- 2020-01-01: 0
46
- 7:
47
- metadata:
48
- label: primary adult, 7th decile substitution elasticity
49
- values:
50
- 2020-01-01: 0
51
- 8:
52
- metadata:
53
- label: primary adult, 8th decile substitution elasticity
54
- values:
55
- 2020-01-01: 0
56
- 9:
57
- metadata:
58
- label: primary adult, 9th decile substitution elasticity
59
- values:
60
- 2020-01-01: 0
61
- 10:
62
- metadata:
63
- label: primary adult, 10th decile substitution elasticity
64
- values:
65
- 2020-01-01: 0
66
- secondary:
67
- metadata:
68
- label: secondary adult, all deciles substitution elasticity
69
- description: Any earner in the tax unit who is not the primary (highest) earner.
70
- values:
71
- 2020-01-01: 0
@@ -1,45 +0,0 @@
1
- - name: Couple with different ages (under 65 and 65+) with multiplier approach
2
- period: 2023
3
- input:
4
- people:
5
- person1:
6
- age: 67
7
- employment_income_before_lsr: 60_000
8
- self_employment_income_before_lsr: 0
9
- person2:
10
- age: 55
11
- employment_income_before_lsr: 40_000
12
- self_employment_income_before_lsr: 0
13
- tax_units:
14
- tax_unit:
15
- members: [person1, person2]
16
- gov.simulation.labor_supply_responses.elasticities.substitution.all: 0
17
- gov.simulation.labor_supply_responses.elasticities.substitution.by_position_and_decile.primary.5: 0.20
18
- gov.simulation.labor_supply_responses.elasticities.substitution.by_position_and_decile.secondary: 0.30
19
- gov.simulation.labor_supply_responses.elasticities.substitution.age_multiplier_over_threshold: 2.0
20
- gov.simulation.labor_supply_responses.elasticities.income.all: 0
21
- gov.simulation.labor_supply_responses.elasticities.income.base: -0.04
22
- gov.simulation.labor_supply_responses.elasticities.income.age_multiplier_over_threshold: 2.0
23
- output:
24
- substitution_elasticity:
25
- - 0.40 # person1: 67 years old, primary earner (60k), decile 5 (50k-61k), base 0.20 × multiplier 2.0 = 0.40
26
- - 0 # person2: 55 years old, secondary earner, gets 0 since not primary
27
- income_elasticity:
28
- - -0.08 # person1: 67 years old, base -0.04 × multiplier 2.0 = -0.08
29
- - -0.04 # person2: 55 years old, base -0.04 (no multiplier)
30
-
31
- - name: Person with negative net earnings has zero substitution elasticity
32
- period: 2023
33
- input:
34
- age: 66
35
- employment_income_before_lsr: 25_000
36
- self_employment_income_before_lsr: -30_000
37
- gov.simulation.labor_supply_responses.elasticities.substitution.all: 0
38
- gov.simulation.labor_supply_responses.elasticities.substitution.by_position_and_decile.primary.1: 0.25
39
- gov.simulation.labor_supply_responses.elasticities.substitution.age_multiplier_over_threshold: 2.0
40
- gov.simulation.labor_supply_responses.elasticities.income.all: 0
41
- gov.simulation.labor_supply_responses.elasticities.income.base: -0.04
42
- gov.simulation.labor_supply_responses.elasticities.income.age_multiplier_over_threshold: 2.25
43
- output:
44
- substitution_elasticity: 0 # Negative net earnings (-5k) treated as 0, resulting in zero elasticity
45
- income_elasticity: -0.09 # Income elasticity still applies: -0.04 × 2.25 = -0.09