Maria Socorro Gochoco-Bautista: This study examines the macroeconomic effects of the July 2022 income tax revision in Korea. In particular, the authors want to predict how the progressivity of the tax system changes based on how much government's predicted revenue will change by. The authors have the model target that change to impute the parameters τ and λ from a partial equilibrium set-up, which they then plug into a general equilibrium set-up.
Are most workers in the data set salaried, hourly, or self-employed? The model assumes that labor supply is inelastic and thus abstracts from occupational choice or self-employment. Footnote 3 cites some studies that estimate labor supply elasticity in Korea and find it to be inelastic. I think that the authors need to justify this assumption of labor supply inelasticity by checking the data to show the fraction of people who are salaried versus hourly earners and then see...