Assumption parameters#
This section contains documentation of several sets of parameters that characterize responses to a tax reform. Consumption parameters are used to compute marginal tax rates and to compute the consumption value of in-kind benefits. Growdiff parameters are used to specify baseline differences and/or reform responses in the annual rate of growth in economic variables. (Note that behavior parameters used to compute changes in input variables caused by a tax reform in a partial-equilibrium setting are not part of Tax-Calculator, but can be used via the Behavioral-Response behresp package in a Python program.)
The assumption parameters control advanced features of Tax-Calculator, so understanding the source code that uses them is essential. Default values of many assumption parameters are zero and are projected into the future at that value, which implies no response to the reform. The benefit value consumption parameters have a default value of one, which implies the consumption value of the in-kind benefits is equal to the government cost of providing the benefits.
Growdiff#
ABOOK#
Long Name: ABOOK additive difference from default projection
Description: Default projection is in growfactors.csv file. ABOOK extrapolates input variables: e07300 and e07400.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ACGNS#
Long Name: ACGNS additive difference from default projection
Description: Default projection is in growfactors.csv file. ACGNS extrapolates input variables: e01200, p22250, p23250, e24515 and e24518.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ACPIM#
Long Name: ACPIM additive difference from default projection
Description: Default projection is in growfactors.csv file. ACPIM extrapolates input variables: e03270, e03290 and e17500.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ACPIU#
Long Name: ACPIU additive difference from default projection
Description: Default projection is in growfactors.csv file. ACPIU is the price inflation rate used to inflate many policy parameters. Note that non-zero values of this parameter will not affect historically known values of policy parameters.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ADIVS#
Long Name: ADIVS additive difference from default projection
Description: Default projection is in growfactors.csv file. ADIVS extrapolates input variables: e00600 and e00650.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
AINTS#
Long Name: AINTS additive difference from default projection
Description: Default projection is in growfactors.csv file. AINTS extrapolates input variables: e00300 and e00400.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
AIPD#
Long Name: AIPD additive difference from default projection
Description: Default projection is in growfactors.csv file. AIPD extrapolates input variables: e19200.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ASCHCI#
Long Name: ASCHCI additive difference from default projection
Description: Default projection is in growfactors.csv file. ASCHCI extrapolates input variables: e00900, e00900p and e00900s when they are positive.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ASCHCL#
Long Name: ASCHCL additive difference from default projection
Description: Default projection is in growfactors.csv file. ASCHCL extrapolates input variables: e00900, e00900p and e00900s when they are negative.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ASCHEI#
Long Name: ASCHEI additive difference from default projection
Description: Default projection is in growfactors.csv file. ASCHEI extrapolates input variables: e02000 when positive, and e26270, k1bx14p, k1bx14s and e27200 for all values.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ASCHEL#
Long Name: ASCHEL additive difference from default projection
Description: Default projection is in growfactors.csv file. ASCHEL extrapolates input variable: e02000 when negative.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ASCHF#
Long Name: ASCHF additive difference from default projection
Description: Default projection is in growfactors.csv file. ASCHF extrapolates input variables: e02100, e02100p and e02100s.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ASOCSEC#
Long Name: ASOCSEC additive difference from default projection
Description: Default projection is in growfactors.csv file. ASOCSEC extrapolates input variable: e02400.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ATXPY#
Long Name: ATXPY additive difference from default projection
Description: Default projection is in growfactors.csv file. ATXPY extrapolates input variables: e00700, e00800, e01400, e01500, e01700, e03150, e03210, e03220, e03230, e03300, e03400, e03500, e07240, e07260, p08000, e09700, e09800, e09900, e11200, e18400, e18500, e19800, e20100, e20400, g20500, e07600, e32800, e58990, e62900, e87530, e87521 and cmbtp.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
AUCOMP#
Long Name: AUCOMP additive difference from default projection
Description: Default projection is in growfactors.csv file. AUCOMP extrapolates input variable: e02300.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
AWAGE#
Long Name: AWAGE additive difference from default projection
Description: Default projection is in growfactors.csv file. AWAGE extrapolates input variables: e00200, e00200p and e00200s. Also, AWAGE is the wage growth rate used to inflate the OASDI maximum taxable earnings policy parameter, _SS_Earnings_c. Note that non-zero values of this parameter will not affect historically known values of _SS_Earnings_c.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ABENOTHER#
Long Name: ABENOTHER additive difference from default projection
Description: Default projection is in growfactors.csv file. ABENOTHER extrapolates input variable other_ben.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ABENMCARE#
Long Name: ABENMCARE additive difference from default projection
Description: Default projection is in growfactors.csv file. ABENMCARE extrapolates input variable mcare_ben.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ABENMCAID#
Long Name: ABENMCAID additive difference from default projection
Description: Default projection is in growfactors.csv file. ABENMCAID extrapolates input variable mcaid_ben.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ABENSSI#
Long Name: ABENSSI additive difference from default projection
Description: Default projection is in growfactors.csv file. ABENSSI extrapolates input variable ssi_ben.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ABENSNAP#
Long Name: ABENSNAP additive difference from default projection
Description: Default projection is in growfactors.csv file. ABENSNAP extrapolates input variable snap_ben.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ABENWIC#
Long Name: ABENWIC additive difference from default projection
Description: Default projection is in growfactors.csv file. ABENWIC extrapolates input variable wic_ben.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ABENHOUSING#
Long Name: ABENHOUSING additive difference from default projection
Description: Default projection is in growfactors.csv file. ABENHOUSING extrapolates input variable housing_ben.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ABENTANF#
Long Name: ABENTANF additive difference from default projection
Description: Default projection is in growfactors.csv file. ABENTANF extrapolates input variable tanf_ben.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
ABENVET#
Long Name: ABENVET additive difference from default projection
Description: Default projection is in growfactors.csv file. ABENVET extrapolates input variable vet_ben.
Value Type: float
Default Value: 0.0
Valid Range: min = -10 and max = 10
Out-of-Range Action: error
Consumption#
MPC_e17500#
Long Name: Marginal propensity to consume medical expenses
Description: Defined as dollar change in medical-expense consumption divided by dollar change in income. Typical value is in [0,1] range.
Value Type: float
Default Value: 0.0
Valid Range: min = 0 and max = 1
Out-of-Range Action: error
MPC_e18400#
Long Name: Marginal propensity to consume state-and-local taxes
Description: Defined as dollar change in state-and-local-taxes consumption divided by dollar change in income. Typical value is in [0,1] range.
Value Type: float
Default Value: 0.0
Valid Range: min = 0 and max = 1
Out-of-Range Action: error
MPC_e19800#
Long Name: Marginal propensity to consume charity cash contributions
Description: Defined as dollar change in charity-cash-contribution consumption divided by dollar change in income. Typical value is in [0,1] range.
Value Type: float
Default Value: 0.0
Valid Range: min = 0 and max = 1
Out-of-Range Action: error
MPC_e20400#
Long Name: Marginal propensity to consume miscellaneous deduction expenses
Description: Defined as dollar change in miscellaneous-deduction-expense consumption divided by dollar change in income. Typical value is in [0,1] range.
Value Type: float
Default Value: 0.0
Valid Range: min = 0 and max = 1
Out-of-Range Action: error
BEN_housing_value#
Long Name: Consumption value of housing benefits
Description: Consumption value per dollar of housing benefits, all of which are in-kind benefits.
Value Type: float
Default Value: 1.0
Valid Range: min = 0 and max = 1
Out-of-Range Action: error
BEN_snap_value#
Long Name: Consumption value of SNAP benefits
Description: Consumption value per dollar of SNAP benefits, all of which are in-kind benefits.
Value Type: float
Default Value: 1.0
Valid Range: min = 0 and max = 1
Out-of-Range Action: error
BEN_tanf_value#
Long Name: Consumption value of TANF benefits
Description: Consumption value per dollar of TANF benefits, some of which are cash benefits and some of which are in-kind benefits.
Value Type: float
Default Value: 1.0
Valid Range: min = 0 and max = 1
Out-of-Range Action: error
BEN_vet_value#
Long Name: Consumption value of veterans benefits
Description: Consumption value per dollar of veterans benefits, some of which are in-kind benefits (only about 48% are cash benefits).
Value Type: float
Default Value: 1.0
Valid Range: min = 0 and max = 2
Out-of-Range Action: error
BEN_wic_value#
Long Name: Consumption value of WIC benefits
Description: Consumption value per dollar of WIC benefits, all of which are in-kind benefits.
Value Type: float
Default Value: 1.0
Valid Range: min = 0 and max = 1
Out-of-Range Action: error
BEN_mcare_value#
Long Name: Consumption value of Medicare benefits
Description: Consumption value per dollar of Medicare benefits, all of which are in-kind benefits.
Value Type: float
Default Value: 1.0
Valid Range: min = 0 and max = 2
Out-of-Range Action: error
BEN_mcaid_value#
Long Name: Consumption value of Medicaid benefits
Description: Consumption value per dollar of Medicaid benefits, all of which are in-kind benefits.
Value Type: float
Default Value: 1.0
Valid Range: min = 0 and max = 2
Out-of-Range Action: error
BEN_other_value#
Long Name: Consumption value of other benefits
Description: Consumption value per dollar of other benefits, some of which are in-kind benefits (somewhere between 52% and 76% are in-kind benefits).
Value Type: float
Default Value: 1.0
Valid Range: min = 0 and max = 1
Out-of-Range Action: error