Applied Microeconomics
Applied Microeconomics
The Applied Microeconomics research group unites researchers working on a broad array of topics within such areas as labour economics, economics of education, health economics, family economics, urban economics, environmental economics, and the economics of science and innovation. The group operates in close collaboration with the CAGE Research Centre.
The group participates in the CAGE seminar on Applied Economics, which runs weekly on Tuesdays at 2:15pm. Students and faculty members of the group present their ongoing work in two brown bag seminars, held weekly on Tuesdays and Wednesdays at 1pm. Students, in collaboration with faculty members, also organise a bi-weekly reading group in applied econometrics on Thursdays at 1pm. The group organises numerous events throughout the year, including the Research Away Day and several thematic workshops.
Our activities
Work in Progress seminars
Tuesdays and Wednesdays 1-2pm
Students and faculty members of the group present their work in progress in two brown bag seminars. See below for a detailed scheduled of speakers.
Applied Econometrics reading group
Thursdays (bi-weekly) 1-2pm
Organised by students in collaboration with faculty members. See the Events calendar below for further details
People
Academics
Academics associated with the Applied Microeconomics Group are:
Research Students
Events
Macro/International Economics Seminar - Raffaele Rossi (Manchester)
Raffaele will be visiting the department for this Seminar - Roberto Pancrazi will be hosting this visit.
Title: Marginal Tax Rate Changes in the Long-Run: Evidence from a Structural Estimation, With Patrick Macnamara (U. of Manchester) and Myroslav Pidkuyko (Bank of Spain).
Abstract: Using a structural life-cycle model, we estimate the long-run behavioral response to marginal tax rate changes along the income distribution. We find statistically significant long-run tax elasticities of income of around 0.7 for all taxpayers. We also estimate that the richest top 1 percent displays the highest elasticities of taxable income. In our economy, agents who are sufficiently productive can obtain higher returns on their wealth by choosing to be entrepreneurs. Return heterogeneity, in combination with earning risk and tax progressivity, increases the incentives to save and invest for the richest, high-return entrepreneurs, thus amplifying their income responses to marginal tax changes. This reallocation of capital increases aggregate productivity, generating a larger boost in equilibrium wages. This, in turn, strengthens the income response of the bottom 90 percent, but nevertheless, their response is smaller than at the top.