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Sufficient Statistics for Welfare Analysis

Chetty, R. (2009). Sufficient Statistics for Welfare Analysis: A Bridge Between Structural and Reduced-Form Methods. Annual Review of Economics, 1, 451-488.

Type
Journal article
Intellectual base
Review or monograph
Year
2009
Volume
1
Pages
451-488
DOI
10.1146/annurev.economics.050708.142910
DOI registrant
Annual Reviews
Link
https://doi.org/10.1146/annurev.economics.050708.142910
Cited from
economics_finance

Cited by

2 citations across 2 artifacts.

Each citation links to the sentence it supports in the citing article.

Primes

  • Deadweight Loss
    • Sufficient-statistics methodology: Chetty (2009)

      This sourceShows DWL can be estimated from reduced-form behavioral elasticities (e.g., taxable-income elasticity) without a full structural model — the sufficient-statistics approach now standard in applied tax-policy evaluation.

      SupportedVerified against the work's full text

      Chetty sets out the sufficient-statistics approach and works the example that the taxable-income elasticity alone suffices to compute deadweight cost.

      “Equation (20) shows that we simply need to measure how taxable income responds to changes in the tax rate to calculate the deadweight cost of income taxation.”

      From the work's full text.

      Read by an automated reader; not a human review. How support was checked

  • Price Elasticity

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