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Non-bunching at kinks and notches in cash transfers in the Netherlands

Author

Listed:
  • Nicole Bosch

    () (CPB Netherlands Bureau for Economic Policy Analysis)

  • Egbert Jongen

    () (CPB Netherlands Bureau for Economic Policy Analysis
    Leiden University
    IZA)

  • Wouter Leenders

    () (University of Zurich)

  • Jan Möhlmann

    () (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

We study the behavioural responses to kinks and notches in the Dutch system of cash transfers, using data on the universe of Dutch households for the period 2007–2014. We typically do not find statistically significant evidence of bunching around kinks or notches, neither in income nor in wealth. This finding is robust across different household types and modes of employment. We consider potential mechanisms that can explain this apparent lack of bunching.

Suggested Citation

  • Nicole Bosch & Egbert Jongen & Wouter Leenders & Jan Möhlmann, 2019. "Non-bunching at kinks and notches in cash transfers in the Netherlands," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(6), pages 1329-1352, December.
  • Handle: RePEc:kap:itaxpf:v:26:y:2019:i:6:d:10.1007_s10797-019-09555-8
    DOI: 10.1007/s10797-019-09555-8
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    References listed on IDEAS

    as
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    Cited by:

    1. Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2020. "Do Couples Bunch More? Evidence from Partnered and Single Taxpayers in New Zealand," Working Paper Series 9366, Victoria University of Wellington, Chair in Public Finance.

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    More about this item

    Keywords

    Bunching; Cash transfers; Income; Wealth;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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