Cross-Country Tax Function Parameters Dataset: A New Dataset added to the LIS Complementary Database
The Cross-Country Tax Function Parameters Dataset provides country-year estimates of a two-parameter log-linear tax function for countries in the Luxembourg Income Study (LIS). The tax function summarizes the relationship between pre-tax and post-tax household income using a level parameter and a progressivity parameter. The parameters are estimated from harmonized LIS microdata, making them comparable across countries and over time.
The dataset includes estimates based on alternative definitions of pre-tax and post-tax income, as well as separate estimates by family structure. The dataset can be used for cross-country research on taxation, redistribution, and inequality, as well as for the calibration and quantitative analysis of macroeconomic models with heterogeneous households.
The results come from the 2025 Aldi Award–winning LIS Working Paper No. 906, “Income Taxation Across Countries” by Xincheng Qiu and Nicolò Russo, forthcoming in The Economic Journal in 2026.
Users can access the data and its documentation from here.