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  • [2105. 10007] Fixed-k Tail Regression: New Evidence on Tax and Wealth . . .
    We develop a novel fixed-k tail regression method that accommodates the unique feature in the Forbes 400 data that observations are truncated from below at the 400th largest order statistic Applying this method, we find that higher maximum marginal income tax rates induce higher wealth Pareto exponents Setting the maximum tax rate to 30-40% (as in U S currently) leads to a Pareto exponent




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