Paper: describe the bunching estimator's E, b_LLAT and censored y_R as implemented - #43
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Paper: describe the bunching estimator's E, b_LLAT and censored y_R as implemented#43vahid-ahmadi wants to merge 2 commits into
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…he code defines them Section 6 described a mass-conservation restriction that locates y_R endogenously and wrote excess bunching as the integral of the counterfactual density. The code sums the positive part of f_obs - f_cf below the threshold for E, searches for y_R only up to the window edge (censored at £100k in the headline run, where Delta_R = 0), and normalises b_LLAT over both sides of the threshold. Say so, and drop the b ≈ Δy*/y* relation that matches neither statistic. Refs #38, #32 (finding 5). Co-Authored-By: Claude Fable 5.1 <noreply@anthropic.com>
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What
Text-only change to the Methodology paragraph of
paper/Sections/bunching.texso it describes the estimator insrc/firm_microsim/bunching/model.pyas implemented:y_Ris found by walking missing mass upward from the threshold within the search window; when missing mass runs out (Delta_R = 0in the headline run) it is censored at the window edge (£100k). The old text said mass conservation locates it "endogenously (excess mass below must equal missing mass above)", which the headline run violates. The appendix already said "the search cap"; body and appendix now agree.gover the bunching interval. Replaced withE = ∫ [f − g]_+ dyover the below window, which is whatlocate_marginal_bunchercomputes, and labelled gross rather than net.b_LLATis described as the positive-part gap over[y*−W, y_R](both sides) divided by mean counterfactual height, "in the spirit of" LLAT's normalisation but not an exact reproduction, and explicitly notEdivided by a density. Theb ≈ Δy*/y*sentence, which matched neitherbnorb_LLATin the code, is removed.No numbers change. The code-side items (a
y_R_censoredflag, separateE_gross/E_net, exact LLAT normalisation, recovery tests) are tracked in #38.Refs #38, #32 (finding 5).
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