Estimate Bunching

Implementation of the bunching estimator for kinks and notches. Allows for flexible estimation of counterfactual (e.g. controlling for round number bunching, accounting for other bunching masses within bunching window, fixing bunching point to be minimum, maximum or median value in its bin, etc.). It produces publication-ready plots in the style followed since Chetty et al. (2011) , with lots of functionality to set plot options.

bunching

Overview

bunching allows the user to conduct bunching analysis in a kink or notch setting and returns a rich set of results. Important features of the package include functionality to control for (different levels of) round-number bunching or other bunching masses within the estimation bandwidth, options to split bins by placing the bunching point as the minimum, median or maximum in its bin (for robustness analysis), and produces estimates of both parametric and reduced-form versions of elasticities associated with the bunching mass. It also returns (residual-based) bootstrapped vectors of estimates of all the main estimable parameters (bunching mass, elasticity, marginal buncher, dominated region, fraction in dominated region in notch setting, etc.) which can be used for further analysis, e.g. incorporation into structural models that rely on bunching moments. The package also provides an exploratory viusalization function to speed up pre-analysis, and produces plots in the Chetty et al. (2011) style with lots of options on editing the plot appearance.

Installation

You can install the released version of bunching from CRAN with:

install.packages("bunching")

You can install the development version from GitHub with:

# install.packages("devtools")
devtools::install_github("mavpanos/bunching")

If you find a bug, please file a minimal reproducible example in the issues.