tag:blogger.com,1999:blog-8283968591600382007.post3374423941495213420..comments2014-12-03T23:00:36.337-05:00Comments on Evan Soltas: Follow-Up: Deficit CyclicalityEvan Soltashttp://www.blogger.com/profile/06212305798151301158noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8283968591600382007.post-9161013204931518452012-12-30T18:29:17.539-05:002012-12-30T18:29:17.539-05:00Evan, this is very interesting, but the graph does...Evan, this is very interesting, but the graph doesn't seem to track the rise in inequality. Income inequality has steadily increased over 40 years, whereas this chart seems to show a one-time bump in cyclical responsiveness. Any thoughts?Charleshttp://www.blogger.com/profile/17810518555756763201noreply@blogger.comtag:blogger.com,1999:blog-8283968591600382007.post-49279034689215131382012-12-30T14:51:56.590-05:002012-12-30T14:51:56.590-05:00'As income inequality has increased, and a lar...'As income inequality has increased, and a larger share of income goes to the top, the share of income tax revenues which come from the "volatile top" has also increased. The graph of the share of income taxes borne by the highest incomes has increased just in the same way that their share of income has increased.'<br /><br />More or less what Art Laffer promised, btw. Does Krugman actually realize the implications of this?Patrick Sullivanhttp://www.blogger.com/profile/14948365865741313524noreply@blogger.comtag:blogger.com,1999:blog-8283968591600382007.post-27619980157157490632012-12-29T22:06:42.517-05:002012-12-29T22:06:42.517-05:00So I just did an error analysis on this -- it took...So I just did an error analysis on this -- it took forever. The standard error of the slope obviously varies over time, but to give you some idea of what it is, the median value is 0.175, and the mean value is 0.237. (The skewness comes from the earliest values in the dataset and the 2007 recession.) So it's pretty good on an RSE basis.Evan Soltashttp://www.blogger.com/profile/06212305798151301158noreply@blogger.comtag:blogger.com,1999:blog-8283968591600382007.post-15183767512372965272012-12-29T17:12:47.035-05:002012-12-29T17:12:47.035-05:00What do the standard errors on this look like? What do the standard errors on this look like? JoshLhttp://www.blogger.com/profile/18202767623861943939noreply@blogger.com