Individual behavioural response of taxation is at the heart of public policy. This is reflected in the economic literature by a large number of articles presenting evidence on how taxes influence individual behaviour. At the Research Department of Statist ics Norway, the importance of this policy issue is echoed by substantial resources allocated to the development of tax policy simulation models and to research activities to obtain information about tax policy effects from various datasets in general. In this project we suggest to add to the literature by writing two papers. First, a survey article discussing two lines of research, reviewing tax microsimulation approach (TMA) and the New Tax Responsiveness literature (NTR). In particular, empirical estima tes from evaluations of the 2006 Norwegian tax reform, according to both lines of research, are discussed. Second, deriving estimates for the Elasticity of Taxable Income (ETI) by using a dynamic panel data approach.