@TechReport{iza:izadps:dp5145,
            	author={Blumkin, Tomer and Ruffle, Bradley and Ganun, Yosef},
            	title={Are Income and Consumption Taxes Ever Really Equivalent? Evidence from a Real-Effort Experiment with Real Goods},
            	year={2010},
	month={Aug},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={5145},
            	url={https://www.iza.org/publications/dp5145},
	abstract={The public finance literature demonstrates the equivalence between consumption and labor-income (wage) taxes. We introduce an experimental paradigm in which individuals make real labor-leisure choices and spend their earned income on real goods. We use this paradigm to test whether a labor-income tax and an equivalent consumption tax lead to identical labor-leisure allocations. Despite controlling for subjects’ work ability and inherent labor-leisure preferences and disallowing saving, subjects reduce their labor supply significantly more in response to an income tax than to an equivalent consumption tax. We discuss the economic implications of a policy shift to a consumption tax.},
	keywords={experimental economics;tax equivalence;income tax;consumption tax;behavioral economics},
            }