Merge pull request PSLmodels#1084 from jdebacker/nonfilers

Merging

Author: rickecon

CHANGELOG.md

@@ -5,11 +5,17 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+## [0.15.3] - 2025-01-24 12:00:00
+
+### Added
+
+- Two new parameters, `income_tax_filer` and `wealth_tax_filer`, that determine whether certain types `j` pay income or wealth taxes, respectively.  See PR [#1084](https://github.com/PSLmodels/OG-Core/pull/1084)
+
 ## [0.15.2] - 2025-01-22 12:00:00
 
 ### Added
 
-- A new parameters, `r_gov_DY` and `r_gov_DY2`, that allow the government interest rate to be a function of the debt-to-GDP ratio.  See PR [#1037](https://github.com/PSLmodels/OG-Core/pull/1037)
+- Two new parameters, `r_gov_DY` and `r_gov_DY2`, that allow the government interest rate to be a function of the debt-to-GDP ratio.  See PR [#1037](https://github.com/PSLmodels/OG-Core/pull/1037)
 
 ## [0.15.1] - 2026-01-19 12:00:00
 
@@ -499,6 +505,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - Any earlier versions of OG-USA can be found in the [`OG-Core`](https://github.com/PSLmodels/OG-Core) repository [release history](https://github.com/PSLmodels/OG-Core/releases) from [v.0.6.4](https://github.com/PSLmodels/OG-Core/releases/tag/v0.6.4) (Jul. 20, 2021) or earlier.
 
 
+[0.15.3]: https://github.com/PSLmodels/OG-Core/compare/v0.15.2...v0.15.3
 [0.15.2]: https://github.com/PSLmodels/OG-Core/compare/v0.15.1...v0.15.2
 [0.15.1]: https://github.com/PSLmodels/OG-Core/compare/v0.15.0...v0.15.1
 [0.15.0]: https://github.com/PSLmodels/OG-Core/compare/v0.14.14...v0.15.0

ogcore/SS.py

@@ -914,6 +914,10 @@ def SS_solver(
         np.reshape(p.labor_income_tax_noncompliance_rate[-1, :], (1, p.J)),
         (p.S, 1),
     )
+    income_tax_filer_2D = np.tile(
+        np.reshape(p.income_tax_filer[-1, :], (1, p.J)),
+        (p.S, 1),
+    )
     mtry_ss = tax.MTR_income(
         r_p_ss,
         wss,
@@ -925,6 +929,7 @@ def SS_solver(
         etr_params_3D,
         mtry_params_3D,
         capital_noncompliance_rate_2D,
+        income_tax_filer_2D,
         p,
     )
     mtrx_ss = tax.MTR_income(
@@ -938,6 +943,7 @@ def SS_solver(
         etr_params_3D,
         mtrx_params_3D,
         labor_noncompliance_rate_2D,
+        income_tax_filer_2D,
         p,
     )
     etr_ss = tax.ETR_income(
@@ -950,6 +956,7 @@ def SS_solver(
         etr_params_3D,
         labor_noncompliance_rate_2D,
         capital_noncompliance_rate_2D,
+        income_tax_filer_2D,
         p,
     )
 

ogcore/TPI.py

@@ -22,6 +22,7 @@
 import os
 import warnings
 import logging
+from distributed import wait
 
 if not SHOW_RUNTIME:
     warnings.simplefilter("ignore", RuntimeWarning)
@@ -819,8 +820,6 @@ def run_TPI(p, client=None):
                 futures.append(f)
             try:
                 # Wait for futures with timeout, then gather results
-                from distributed import wait
-
                 done, not_done = wait(futures, timeout=600)
                 if not_done:
                     # Some futures didn't complete in time
@@ -1315,6 +1314,10 @@ def run_TPI(p, client=None):
         ),
         (1, p.S, 1),
     )
+    income_tax_filer_3D = np.tile(
+        np.reshape(p.income_tax_filer[: p.T, :], (p.T, 1, p.J)),
+        (1, p.S, 1),
+    )
     e_3D = p.e
     mtry_path = tax.MTR_income(
         r_p_path[: p.T],
@@ -1327,6 +1330,7 @@ def run_TPI(p, client=None):
         etr_params_4D,
         mtry_params_4D,
         capital_noncompliance_rate_3D,
+        income_tax_filer_3D,
         p,
     )
     mtrx_path = tax.MTR_income(
@@ -1340,6 +1344,7 @@ def run_TPI(p, client=None):
         etr_params_4D,
         mtrx_params_4D,
         labor_noncompliance_rate_3D,
+        income_tax_filer_3D,
         p,
     )
     etr_path = tax.ETR_income(
@@ -1352,9 +1357,9 @@ def run_TPI(p, client=None):
         etr_params_4D,
         labor_noncompliance_rate_3D,
         capital_noncompliance_rate_3D,
+        income_tax_filer_3D,
         p,
     )
-
     # Note that implicitly in this computation is that immigrants'
     # wealth is all in the form of private capital
     I_d = aggr.get_I(

ogcore/__init__.py

@@ -20,4 +20,4 @@
 from ogcore.txfunc import *
 from ogcore.utils import *
 
-__version__ = "0.15.2"
+__version__ = "0.15.3"

ogcore/default_parameters.json

@@ -4304,6 +4304,62 @@
             }
         }
     },
+    "income_tax_filer": {
+        "title": "Income tax filer indicator",
+        "description": "Binary indicator for whether lifetime income type j is subject to income taxes. Non-filers (tax_filer[j]=0) are not subject to income taxes but still pay payroll taxes.",
+        "section_1": "Fiscal Policy Parameters",
+        "section_2": "Taxes",
+        "notes": "Specified by time T and lifetime income group J. Defaults to 1.0 (all groups file). Can be set to values between 0 and 1 to represent the share of group j that files.",
+        "type": "float",
+        "number_dims": 2,
+        "value": [
+            {
+                "value": [[
+                    1.0,
+                    1.0,
+                    1.0,
+                    1.0,
+                    1.0,
+                    1.0,
+                    1.0
+                ]]
+            }
+        ],
+        "validators": {
+            "range": {
+                "min": 0.0,
+                "max": 1.0
+            }
+        }
+    },
+        "wealth_tax_filer": {
+        "title": "Wealth tax filer indicator",
+        "description": "Binary indicator for whether lifetime income type j is subject to wealth taxes. Non-filers (wealth_tax_filer[j]=0) are not subject to wealth taxes but still pay payroll taxes.",
+        "section_1": "Fiscal Policy Parameters",
+        "section_2": "Taxes",
+        "notes": "Specified by time T and lifetime income group J. Defaults to 1.0 (all groups file). Can be set to values between 0 and 1 to represent the share of group j that files.",
+        "type": "float",
+        "number_dims": 2,
+        "value": [
+            {
+                "value": [[
+                    1.0,
+                    1.0,
+                    1.0,
+                    1.0,
+                    1.0,
+                    1.0,
+                    1.0
+                ]]
+            }
+        ],
+        "validators": {
+            "range": {
+                "min": 0.0,
+                "max": 1.0
+            }
+        }
+    },
     "nu": {
         "title": "Parameter for convergence rate of functional iteration",
         "description": "Parameter for convergence rate of functional iteration.",

ogcore/household.py

@@ -480,15 +480,21 @@ def FOC_savings(
         beta = p.beta[j]
         if method == "SS":
             tax_noncompliance = p.capital_income_tax_noncompliance_rate[-1, j]
+            income_tax_filer = p.income_tax_filer[-1, j]
+            wealth_tax_filer = p.wealth_tax_filer[-1, j]
             e = np.squeeze(p.e[-1, :, j])
         elif method == "TPI_scalar":
             tax_noncompliance = p.capital_income_tax_noncompliance_rate[0, j]
+            income_tax_filer = p.income_tax_filer[0, j]
+            wealth_tax_filer = p.wealth_tax_filer[0, j]
             e = np.squeeze(p.e[0, :, j])
         else:
             length = r.shape[0]
             tax_noncompliance = p.capital_income_tax_noncompliance_rate[
                 t : t + length, j
             ]
+            income_tax_filer = p.income_tax_filer[t : t + length, j]
+            wealth_tax_filer = p.wealth_tax_filer[t : t + length, j]
             e_long = np.concatenate(
                 (
                     p.e,
@@ -502,15 +508,21 @@ def FOC_savings(
         beta = p.beta
         if method == "SS":
             tax_noncompliance = p.capital_income_tax_noncompliance_rate[-1, :]
+            income_tax_filer = p.income_tax_filer[-1, :]
+            wealth_tax_filer = p.wealth_tax_filer[-1, :]
             e = np.squeeze(p.e[-1, :, :])
         elif method == "TPI_scalar":
             tax_noncompliance = p.capital_income_tax_noncompliance_rate[0, :]
+            income_tax_filer = p.income_tax_filer[0, :]
+            wealth_tax_filer = p.wealth_tax_filer[0, :]
             e = np.squeeze(p.e[0, :, :])
         else:
             length = r.shape[0]
             tax_noncompliance = p.capital_income_tax_noncompliance_rate[
                 t : t + length, :
             ]
+            income_tax_filer = p.income_tax_filer[t : t + length, :]
+            wealth_tax_filer = p.wealth_tax_filer[t : t + length, :]
             e_long = np.concatenate(
                 (
                     p.e,
@@ -572,10 +584,11 @@ def FOC_savings(
                 etr_params,
                 mtry_params,
                 tax_noncompliance,
+                income_tax_filer,
                 p,
             )
         )
-        - tax.MTR_wealth(b, h_wealth, m_wealth, p_wealth)
+        - tax.MTR_wealth(b, h_wealth, m_wealth, p_wealth, wealth_tax_filer)
     )
     savings_ut = (
         rho * np.exp(-p.sigma * p.g_y) * chi_b * b_splus1 ** (-p.sigma)
@@ -685,14 +698,17 @@ def FOC_labor(
     if j is not None:
         if method == "SS":
             tax_noncompliance = p.labor_income_tax_noncompliance_rate[-1, j]
+            income_tax_filer = p.income_tax_filer[-1, j]
             e = np.squeeze(p.e[-1, :, j])
         elif method == "TPI_scalar":
             tax_noncompliance = p.labor_income_tax_noncompliance_rate[0, j]
+            income_tax_filer = p.income_tax_filer[0, j]
             e = np.squeeze(p.e[0, -1, j])
         else:
             tax_noncompliance = p.labor_income_tax_noncompliance_rate[
                 t : t + length, j
             ]
+            income_tax_filer = p.income_tax_filer[t : t + length, j]
             e_long = np.concatenate(
                 (
                     p.e,
@@ -704,14 +720,17 @@ def FOC_labor(
     else:
         if method == "SS":
             tax_noncompliance = p.labor_income_tax_noncompliance_rate[-1, :]
+            income_tax_filer = p.income_tax_filer[-1, :]
             e = np.squeeze(p.e[-1, :, :])
         elif method == "TPI_scalar":
             tax_noncompliance = p.labor_income_tax_noncompliance_rate[0, :]
+            income_tax_filer = p.income_tax_filer[0, :]
             e = np.squeeze(p.e[0, -1, :])
         else:
             tax_noncompliance = p.labor_income_tax_noncompliance_rate[
                 t : t + length, :
             ]
+            income_tax_filer = p.income_tax_filer[t : t + length, :]
             e_long = np.concatenate(
                 (
                     p.e,
@@ -761,6 +780,7 @@ def FOC_labor(
             etr_params,
             mtrx_params,
             tax_noncompliance,
+            income_tax_filer,
             p,
         )
     )

ogcore/parameters.py

@@ -208,6 +208,8 @@ def compute_default_params(self):
             "labor_income_tax_noncompliance_rate",
             "capital_income_tax_noncompliance_rate",
             "replacement_rate_adjust",
+            "income_tax_filer",
+            "wealth_tax_filer",
         ]
         for item in tp_param_list3:
             param_in = getattr(self, item)