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@john-p-ryan Thanks for this PR! Can you resolve the conflicts with the master branch and then I'll merge? |
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Sorry for the conflict, should be resolved now. It was just regarding the normalization of the weights. It should be normalized using the density rather than just the sum. |
Codecov ReportAttention: Patch coverage is
Additional details and impacted files@@ Coverage Diff @@
## main #31 +/- ##
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- Coverage 72.81% 51.63% -21.19%
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Files 3 3
Lines 103 153 +50
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+ Hits 75 79 +4
- Misses 28 74 +46
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Thanks, @john-p-ryan . And good catch on the integration. Formatting no passing, but I'll go ahead and merge (in future just run |
Merge pull request PSLmodels#31 from john-p-ryan/main
Estimates the marginal tax rates using the functional form from Heathcote, Storesletten, Violante (2017). That is,
The estimate for$\tau$ is about .08 to .1 depending on the sample, which is lower than the literature, but otherwise is consistent.