Nada Eissa's studies of the impact of the Tax Reform Act of 1986 on labor supply are an example of which type of approach to estimating the elasticity of labor supply? Hint: Eissa used the fact that the Tax Reform Act of 1986 affected very high income and moderately high income people differently.

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Eissa's approach is an example of quasi-experiment because she used the natural experiment of the Tax Reform Act of 1986 to observe the effect on labor supply for two different groups (very high-income and moderately high-income individuals) who were affected differently by the reform. This approach allows for some control over potential confounding factors and provides a way to estimate the causal effect of the tax reform on labor supply.

Nada Eissa's Studies of the Impact of the Tax Reform