In the later year, some people will have been added from below, and some will have moved up into the higher bracket. The upper bound, H. on the interval for this group is, therefore, the lower bound previously calculated for the higher group. The more difficult question is what is the lower-bound cutoff income, L, such that there are exactly Mt people in the interval LL, Hi. Author's calculations based on data from Internal Revenue Service, Statistics of Income, venous issues. The dependent variable is the log number of tax returns greater than some amount, and the nght-hand side variable is the log of that amount.
Standard errors are in parentheses.
Again there will be two types of groups.