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@vahid-ahmadi vahid-ahmadi commented Aug 25, 2025

Fixes #12

@vahid-ahmadi vahid-ahmadi self-assigned this Aug 25, 2025
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Please ignore the elasticity parameters for now, I still need to calibrate those values.

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Pull Request Overview

This PR adds comprehensive bunching analysis capabilities to the repository by introducing a complete 5-step VAT bunching analysis pipeline for studying firm responses to VAT registration thresholds. The implementation includes advanced probabilistic mapping, policy simulation, and revenue analysis features.

Key changes:

  • Complete bunching analysis implementation with Steps 1-5 pipeline
  • Advanced probabilistic mapping for micro-level firm behavior analysis
  • Comprehensive documentation for both synthetic data generation and bunching analysis methodology

Reviewed Changes

Copilot reviewed 4 out of 5 changed files in this pull request and generated 5 comments.

File Description
analysis/bunching_analysis.py Complete 5-step VAT bunching analysis implementation with advanced mapping algorithms
analysis/README_synthetic_data.md Comprehensive documentation for synthetic UK business data generation methodology
analysis/README_bunching_analysis.md Detailed documentation of VAT bunching analysis theory and implementation
analysis/README.md Removed old synthetic data documentation (replaced by new dedicated file)

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Comment on lines +30 to +31
warnings.filterwarnings('ignore')

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Suppressing all warnings globally is not recommended as it can hide important issues. Consider using more specific warning filters or contextual warning suppression for known harmless warnings.

Suggested change
warnings.filterwarnings('ignore')

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Implement bunching analysis and elasticity estimation

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