PolicyEngine / PolicyEngine/policyengine.py
Compute labor supply response revenue_change instead of preserving legacy zero
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- Dominant language
- Python
- Stars
- 7
- Forks
- 9
- Avg merge
- 15h 51m
- Merged PRs (30d)
- 9
Description
Context
PR #360 (Add labor supply response macro output) adds a 4.x-compatible LaborSupplyResponse output that preserves the legacy macro output shape.
As part of that parity work, revenue_change is intentionally set to 0.0 because the legacy API initialized budgetary_impact_lsr to zero and never populated it. That preserves existing public behavior, but it leaves a real fiscal-effect gap: callers may reasonably interpret labor_supply_response.revenue_change as the tax/revenue impact caused by labor-supply responses.
Current behavior
calculate_labor_supply_response(...) computes LSR behavioral quantities such as:
income_lsrsubstitution_lsrtotal_changerelative_lsr- decile average/relative breakdowns
- hours effects where supported
But revenue_change remains hard-coded to 0.0 for both active and inactive LSR paths.
Desired behavior
Determine and implement the correct fiscal calculation for LaborSupplyResponse.revenue_change, rather than preserving the legacy zero.
Acceptance criteria
- Define the intended meaning and sign convention for
revenue_change. - Compute
revenue_changefor active LSR runs using available simulation outputs or clearly documented additional required outputs. - Preserve zero behavior for inactive LSR runs.
- Add focused tests for non-zero revenue effects, zero/inactive behavior, and sign convention.
- Document any intentional divergence from legacy
budgetary_impact_lsrbehavior.
Related PR: #360
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 calculate_labor_supply_response(...) and review PR #360 to understand the existing LaborSupplyResponse output and legacy budgetary_impact_lsr behavior. Define the meaning and sign convention for revenue_change, then identify the available simulation outputs needed to compute it. Done means active runs produce tested non-zero effects, inactive runs remain zero, and any legacy divergence is documented.
Written by the indexing model from the issue text.
Assessment
- Tech stack
- python
- Domain
- backend-api-design
- Issue type
- Feature
- Difficulty
- 5/5
- Estimated time
- Over a week
- Activity status
- Quiet
- Clarity
- Mostly clear
- Newbie friendliness
- 35/100