Estimation of elasticities for revenue bases

To inform the Commission on the extent to which its measures of State revenue bases are affected by differences in each State’s effective tax rates over time, including the impact of tax thresholds and progressivity where relevant, the consultant should conduct a study, building on the previous scoping study, involving the following specific tasks. •Collect the data sets identified in the scoping study as necessary for the development of elasticity estimates, either directly or through CGC assistance accessing State data. •Apply the econometric methods outlined in the scoping study to estimate own tax elasticities (not cross tax elasticities) in relation to payroll tax, land tax, stamp duty, insurance and motor taxes where possible, based on the availability, quality and cost of the detailed data sets required. •Provide advice on the reliability and robustness of each estimate, including limitations related to methods and data.