Blomquist, Sören; Simula, Laurent - Nationalekonomiska Institutionen, Uppsala Universitet - 2010
variations in linear budget constraints. This is quite surprising since most income tax systems are nonlinear, generating … nonlinear budget constraints. Instead of developing the proper procedure to calculate the marginal deadweight loss for … variations in nonlinear income taxes a common procedure has been to linearize the nonlinear budget constraint and apply methods …