4 Using a variation of the same methodology, Follette and Lutz (2010) provide an estimate of the output elasticity of tax revenues θY of 1:6 for the US at federal level. However this estimate is based on annual data.
5 In the application of the wild bootstrap, we multiply in each artificial sample every uˆt with a random variable taking on values of -1 or 1 with probability 0.5
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