PolicyEngine / PolicyEngine/policyengine-api
Net income waterfall breaks with labor supply responses
Nobody has claimed this yet.
- Dominant language
- Python
- Stars
- 18
- Forks
- 33
- Avg merge
- 23h 40m
- Merged PRs (30d)
- 22
Description
This can't be right (static model has it costing $5.4 billion, and the labor supply impact is $145 billion)
This has broken many times now, and it's front and center to our users. The approach of taking the change in net income and backing out quantities from there seems inherently brittle. Can we instead sum up each component and then assert it adds up as intended?
Edit: Now I'm wondering if this could actually be correct (31% implied tax rate) but that the labor supply response is wrong: a $5bn static transfer has 27x that in LSR??
Contributor guide
First steps
- Read the whole issue, then the project's contributing guide.
- Comment on the issue to say you are picking it up — it saves two people doing the same work.
- Fork the repository and make your change on a branch.
- Open a pull request that references the issue number.
Research direction
Start with the linked netIncome and laborSupplyImpact policy outputs, comparing the static transfer result with the labor-supply response. Trace how the waterfall derives its quantities, then verify that the individual components sum to the intended net-income change and that the labor-supply impact is consistent with the reform.
Written by the indexing model from the issue text.
Assessment
- Tech stack
- python
- Domain
- api, backend
- Issue type
- Bug
- Difficulty
- 5/5
- Estimated time
- Over a week
- Activity status
- Stale
- Clarity
- Needs clarification
- Newbie friendliness
- 35/100