Errors in the Research of Emmanuel Saez and Gabriel Zucman

Johannesen, Sæverud, Saez · American Economic Review: Insights 8(2): 247-264

The savings limit studied in the paper governs two benefits at once: the yearly cash payment and a health subsidy for medicine, dental care and glasses. The paper credits the whole savings response to the cash payment, and the 2003 and 2010 rule changes it uses as tests also changed the health subsidy. The response is real, but how much of it is due to the cash payment alone is not known.