Behavior parameters

Behavior parameters#

Note that logic that uses assumed behavior parameters to compute changes in input variables caused by a tax reform in a partial-equilibrium setting is not part of Tax-Calculator. The response function in the PSLmodels Behavioral-Responses behresp package contains that logic.

By default Tax-Calculator assumes no behavioral responses to a tax reform, which is the same as saying the behavior parameters (or elasticities) are assumed to be zero by default. The elasticities can be set to non-zero values in a JSON file that is formatted like this).