The "bunching" command uses bunching to partially and point identify the elasticity of income with respect to tax rates using different assumptions on unobserved heterogeneity, according to the paper, Better Bunching, Nicer Notching. The command "bunching" is a wrapper function that combines three other commands included in the package: bunchbounds for partial identification, bunchtobit for point identification, and bunchfilter to filter out friction errors.
STATA - automatic installation
| • type "ssc describe bunching" in STATA for a description of the package |
| • type "ssc install bunching" for automatic installation |
| • type "net get bunching" to download a test data file to your current working directory |
| • type "help bunching" for help and examples of how to use the command |
STATA - manual installation
| • Download and unzip the file: stata_bunching.zip |
| • copy the contents of the unzipped folder to your personal-ado directory (except for the DTA file "bunching.dta"). To find out the location of such directory, type "sysdir" in STATA and look for "personal": |
| • MAC users: typically ~/Documents/Stata/ado or ~/Library/Application Support/Stata/ado depending on the version of STATA |
| • Windows users: typically C:\Program Files\Stata16\ado or C:\ado\personal depending on the version of STATA |
| • copy "bunching.dta" (the test data file) to your current working directory |
| • after installing the files, type "help bunching" for help and examples of how to use the command |
Replication files for Bunching estimation of elasticities using Stata
| • Download and unzip the file: BMPS_SJ_replication.zip. |
| • Run "reproduce_bunching_article_rr3.do" to replicate all results. |