My research addresses policy-relevant questions in the fields of public finance and labor economics. More broadly, I am interested in survey design and developing innovative ways to measure and analyze economic behavior.
Publications
- Do Individuals Perceive Income Tax Rates Correctly? Public Finance Review 45(1): 97-117. January 2017
- Heaping at Round Numbers on Financial Questions: The Role of Satisfying, (with Joanne W. Hsu and Brooke Helppie McFall), forthcoming in Survey Research Methods
Working papers and research in progress
- Evaluating Wealth Data Quality in the Redesigned 2014 Survey of Income and Program Participation (with Jonathan Eggleston)
- Examining Black-White Earnings Differentials using Administrative Records (with Misty L. Heggeness, Marta Murray Close, and Samuel L. Myers, Jr.)
- Which employers sponsor defined contribution plans? Evidence from linked employer- employee administrative records (with Joshua Mitchell)
- Uncovering Heterogeneity in Income Tax Perceptions
Abstract
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Paper [PDF]
This paper uses a finite mixture model to uncover heterogeneous income tax rate perceptions, establishing four new results. First, almost half of respondents do not distinguish between marginal and average tax rates. Second, roughly 30 percent of respondents know the statutory marginal tax rates schedule (and answer questions accordingly). Third, among respondents who think all income is taxed at the same rate, roughly 40 percent think all of their income is taxed at the statutory marginal tax rate. Finally, respondents with higher cognitive ability are more likely to report statutory marginal tax rates, but only among respondents who prepare their own income tax returns.
- Survey Measurement of Income Tax Rates
Abstract
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Paper [PDF]
This paper advances a new survey methodology for measuring income tax rates. Data come from a panel of respondentsŐ reported marginal tax rates, average tax rates and income in two subsequent waves of CogEcon. The individual measures of tax beliefs display heterogeneity, even after accounting for income and potential survey noise. Respondents systematically overestimate average tax rates and exhibit substantial heterogeneity. Perceptions of marginal tax rates are accurate at the mean, but exhibit mean reversion and substantial heterogeneity. Perceptions of marginal and average tax rates (conditional on the true rates) vary depending on cognitive ability, general financial knowledge and use of professional tax assistance.
- Survey Measurement of Vehicle Assets: Comparing Kelley Blue Book and Self-Reported Values (with Seth Koch)
Abstract
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Paper [PDF]
In this paper we describe the methodology for collecting and processing vehicle data from the 2011 Cognitive Economics (CogEcon) Study and present summary statistics about the raw data and estimated resale values. Respondents provided information about the make, model and vintage for each of their vehicles. This information was used to estimate resale values using Kelley Blue Book (KBB) and other online valuation tools.There are two main lessons. First, resale values depend on market valuations and it's likely that estimated resale values are more accurate than self-assessed values. Second, the overall asset value must account for how vehicles are financed, whether they are purchased, loaned or leased. Ultimately, there is a trade-off between data quality and the time spent processing the data. For future studies, automating the vehicle valuation procedure seems both feasible and desirable.
- The Evolution of Debt Among Older Americans (with Joanne W. Hsu)
- Tax Perceptions and Tax-Advantaged Retirement Savings