bunching package implements the bunching estimator in settings with kinks or notches.
Given a numeric vector, it allows the user to estimate bunching at a particular location in the vector's distribution, and returns a rich set of results.
Important features include functionality for controlling for (different levels of) round numbers, controlling for other bunching points in the bunching bandwidth,
and splitting bins using the bunching point as the minimum, median or maximum in its bin for robustness analysis. It estimates standard errors using residual-based bootstrapping,
and returns estimated elasticities using both reduced-form and parametric specifications.
Besides estimation, it produces bunching plots in the style of Chetty et al. (2011) with lots of functionality for editing the plot's appearance.
bunching has two main functions:
is the main function that runs all the analysis.
is a tool for exploratory visualization prior to estimating bunching. It can be used to decide how to choose the appropriate binwidth, bandwidth, the number around the bunching point to include in the bunching region, the polynomial order, whether to control for round numbers and other fixed effects in the bandwidth.
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