Using the Discrete Model to Derive Optimal Income Tax Rates

In this paper I perform numerical simulations of the discrete model of optimal income taxation employing a large number of taxpayer types. Moreover, I indicate how the results depend on the number of types used to represent the wage distribution. Finally, I compare simulations of the continuous and discrete optimal tax models under identical circumstances based on US wage data.

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Year of publication:	2013-10-02
Authors:	Bastani, Spencer
Institutions:	Nationalekonomiska Institutionen, Uppsala Universitet
Subject:	optimal income taxation \| simulations \| computational methods

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Extent:	application/pdf
Series:	Working Paper Series, Center for Fiscal Studies.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Working Paper Series, Uppsala Center for Fiscal Studies Number 2013:11 14 pages
Classification:	C63 - Computational Techniques ; H21 - Efficiency; Optimal Taxation ; H24 - Personal Income and Other Nonbusiness Taxes and Subsidies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010818669