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Merged
rickecon merged 24 commits into from
Jan 24, 2026
Merged

Add tax_filer parameter to model income tax non-filers #1084

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8a5a5de
Add tax_filer parameter to model income tax non-filers
jdebacker Dec 23, 2025
1a11fd4
format
jdebacker Dec 24, 2025
fceb79f
add new param for tests
jdebacker Dec 24, 2025
1669d44
Merge remote-tracking branch 'upstream/master' into nonfilers
jdebacker Jan 19, 2026
fca8c89
pass tax_filer array same shape as noncompliance array
jdebacker Jan 19, 2026
5c957f7
update tets for new function calls
jdebacker Jan 19, 2026
a890214
fix wealth funcs
jdebacker Jan 19, 2026
3cad9db
format
jdebacker Jan 19, 2026
efcdc0f
pass params
jdebacker Jan 19, 2026
0e62a7e
fix arg name
jdebacker Jan 19, 2026
3a9431e
separate wealth and income tax filer parameters
jdebacker Jan 20, 2026
2e89a29
fix zeros
jdebacker Jan 20, 2026
3d7f7d1
change arg ordr
jdebacker Jan 20, 2026
fe9a3e5
update SS and tpi with arg order
jdebacker Jan 20, 2026
0b55538
fix order
jdebacker Jan 20, 2026
ecd554d
update other tests for new params
jdebacker Jan 20, 2026
4425ec6
fix arg order
jdebacker Jan 20, 2026
461dc72
format
jdebacker Jan 20, 2026
fd6fc68
Merge remote-tracking branch 'upstream/master' into nonfilers
jdebacker Jan 22, 2026
0b9cdc8
fix attribute name
jdebacker Jan 23, 2026
c4e1aa2
move import to top
jdebacker Jan 24, 2026
720f0aa
bump version and update changelog
jdebacker Jan 24, 2026
e79add2
remove readme and example
jdebacker Jan 24, 2026
44755b6
remove summary doc
jdebacker Jan 24, 2026
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9 changes: 8 additions & 1 deletion CHANGELOG.md
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Original file line number Diff line number Diff line change
Expand Up @@ -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

Expand Down Expand Up @@ -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
Expand Down
7 changes: 7 additions & 0 deletions ogcore/SS.py
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Expand Up @@ -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,
Expand All @@ -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(
Expand All @@ -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(
Expand All @@ -950,6 +956,7 @@ def SS_solver(
etr_params_3D,
labor_noncompliance_rate_2D,
capital_noncompliance_rate_2D,
income_tax_filer_2D,
p,
)

Expand Down
11 changes: 8 additions & 3 deletions ogcore/TPI.py
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Original file line number Diff line number Diff line change
Expand Up @@ -22,6 +22,7 @@
import os
import warnings
import logging
from distributed import wait

if not SHOW_RUNTIME:
warnings.simplefilter("ignore", RuntimeWarning)
Expand Down Expand Up @@ -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
Expand Down Expand Up @@ -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],
Expand All @@ -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(
Expand All @@ -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(
Expand All @@ -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(
Expand Down
2 changes: 1 addition & 1 deletion ogcore/__init__.py
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Expand Up @@ -20,4 +20,4 @@
from ogcore.txfunc import *
from ogcore.utils import *

__version__ = "0.15.2"
__version__ = "0.15.3"
56 changes: 56 additions & 0 deletions ogcore/default_parameters.json
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Expand Up @@ -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.",
Expand Down
22 changes: 21 additions & 1 deletion ogcore/household.py
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Expand Up @@ -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,
Expand All @@ -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,
Expand Down Expand Up @@ -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)
Expand Down Expand Up @@ -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,
Expand All @@ -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,
Expand Down Expand Up @@ -761,6 +780,7 @@ def FOC_labor(
etr_params,
mtrx_params,
tax_noncompliance,
income_tax_filer,
p,
)
)
Expand Down
2 changes: 2 additions & 0 deletions ogcore/parameters.py
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Expand Up @@ -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)
Expand Down
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