domregion {bunching}

Dominated Region

Description

Estimate z (the value of z_vector) that demarcates the upper bound of the dominated region (in notch settings only).

Usage

domregion(zstar, t0, t1, binwidth)

Arguments

zstar

a numeric value for the the bunching point.

t0

numeric value setting the marginal (average) tax rate below zstar in a kink (notch) setting.

t1

numeric value setting the marginal (average) tax rate above zstar in a kink (notch) setting.

binwidth

a numeric value for the width of each bin.

Value

domregion returns a list with the following objects related to the dominated region (in notch settings only):

zD

The level of z that demarcates the upper bound of the dominated region.

zD_bin

The value of the bin which zD falls in.

See Also

bunchit

Examples

domregion(zstar = 10000, t0 = 0, t1 = 0.2, binwidth = 50)