def ETR_income(r, w, b, n, factor, e, etr_params, p):
'''
Calculates effective personal income tax rate.
Args:
r (array_like): real interest rate
w (array_like): real wage rate
b (Numpy array): savings
n (Numpy array): labor supply
factor (scalar): scaling factor converting model units to
dollars
e (Numpy array): effective labor units
etr_params (Numpy array): effective tax rate function parameters
p (OG-USA Specifications object): model parameters
Returns:
tau (Numpy array): effective tax rate on total income
'''
X = (w * e * n) * factor
Y = (r * b) * factor
tau = get_tax_rates(etr_params,
X,
Y,
None,
p.tax_func_type,
'etr',
for_estimation=False)
return tau
def MTR_income(r, w, b, n, factor, mtr_capital, e, etr_params, mtr_params, p):
r'''
Generates the marginal tax rate on labor income for households.
Args:
r (array_like): real interest rate
w (array_like): real wage rate
b (Numpy array): savings
n (Numpy array): labor supply
factor (scalar): scaling factor converting model units to
dollars
mtr_capital (bool): whether to compute the marginal tax rate on
capital income or labor income
e (Numpy array): effective labor units
etr_params (Numpy array): effective tax rate function parameters
p (OG-USA Specifications object): model parameters
Returns:
tau (Numpy array): marginal tax rate on income source
'''
X = (w * e * n) * factor
Y = (r * b) * factor
if p.analytical_mtrs:
tau = get_tax_rates(etr_params,
X,
Y,
None,
p.tax_func_type,
'mtr',
p.analytical_mtrs,
mtr_capital,
for_estimation=False)
else:
tau = get_tax_rates(mtr_params,
X,
Y,
None,
p.tax_func_type,
'mtr',
p.analytical_mtrs,
mtr_capital,
for_estimation=False)
return tau
def test_get_tax_rates(tax_func_type, rate_type, params, for_estimation,
expected):
'''
Teset of txfunc.get_tax_rates() function. There are 6 cases to
test:
1) DEP function, for estimation
2) DEP function, not for estimation
3) GS function, etr
4) GS function, mtr
5) DEP_totalinc function, for estimation
6) DEP_totalinc function, not for estimation
'''
wgts = np.array([0.1, 0.25, 0.55, 0.1])
X = np.array([32.0, 44.0, 1.6, 0.4])
Y = np.array([32.0, 55.0, 0.9, 0.03])
test_txrates = txfunc.get_tax_rates(params, X, Y, wgts, tax_func_type,
rate_type, for_estimation)
assert np.allclose(test_txrates, expected)
def test_get_tax_rates(tax_func_type, rate_type, params, for_estimation,
expected):
'''
Teset of txfunc.get_tax_rates() function. There are 6 cases to
test:
1) DEP function, for estimation
2) DEP function, not for estimation
3) GS function, etr
4) GS function, mtr
5) DEP_totalinc function, for estimation
6) DEP_totalinc function, not for estimation
'''
wgts = np.array([0.1, 0.25, 0.55, 0.1])
X = np.array([32.0, 44.0, 1.6, 0.4])
Y = np.array([32.0, 55.0, 0.9, 0.03])
test_txrates = txfunc.get_tax_rates(params, X, Y, wgts,
tax_func_type, rate_type,
for_estimation)
assert np.allclose(test_txrates, expected)