Average Marginal Income Tax Rates in New Zealand, 1907-2009

Victoria University of Wellington Public Finance Working Paper No. 01/2012

44 Pages Posted: 17 Jan 2013

See all articles by Debasis Bandyopadhyay

Debasis Bandyopadhyay

University of Auckland Business School

Robert J. Barro

Harvard University - Department of Economics; National Bureau of Economic Research (NBER)

Jeremy Couchman

New Zealand Treasury

Norman Gemmell

Victoria University of Wellington - Te Herenga Waka - Victoria Business School

Gordon Liao

Circle Internet Financial

Fiona McAlister

New Zealand Treasury

Date Written: July 1, 2012

Abstract

Estimates of marginal tax rates (MTRs) faced by individual economic agents, and for various aggregates of taxpayers, are important for economists testing behavioural responses to changes in those tax rates. This paper reports estimates of a number of personal marginal income tax rate measures for New Zealand since 1907, focusing mainly on the aggregate income-weighted average MTRs proposed by Barro and Sahasakul (1983, 1986) and Barro and Redlick (2011). The paper describes the methodology used to derive the various MTRs from original data on incomes and taxes from Statistics New Zealand Official Yearbooks (NZOYB), and discusses the resulting estimates.

Keywords: Average marginal tax rates, New Zealand

Suggested Citation

Bandyopadhyay, Debasis and Barro, Robert J. and Couchman, Jeremy and Gemmell, Norman and Liao, Gordon and McAlister, Fiona, Average Marginal Income Tax Rates in New Zealand, 1907-2009 (July 1, 2012). Victoria University of Wellington Public Finance Working Paper No. 01/2012, Available at SSRN: https://ssrn.com/abstract=2199205 or http://dx.doi.org/10.2139/ssrn.2199205

Debasis Bandyopadhyay

University of Auckland Business School ( email )

12 Grafton Rd
Private Bag 92019
Auckland, 1010
New Zealand
64-9-373-7599 extn: 7439 (Phone)

Robert J. Barro

Harvard University - Department of Economics ( email )

Littauer Center
Cambridge, MA 02138
United States
617-495-3203 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Jeremy Couchman

New Zealand Treasury ( email )

No. 1, The Terrace
Wellington, 6011
New Zealand
+64 4 472 2733 (Phone)
+64 4 473 0982 (Fax)

HOME PAGE: http://www.treasury.govt.nz

Norman Gemmell (Contact Author)

Victoria University of Wellington - Te Herenga Waka - Victoria Business School ( email )

PO Box 600
Wellington 6140
New Zealand

Gordon Liao

Circle Internet Financial ( email )

Boston, MA

Fiona McAlister

New Zealand Treasury ( email )

No. 1, The Terrace
Wellington, 6011
New Zealand

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