Optimal Piecewise Linear Income Taxation
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Apps, Patricia; Long, Ngo; Rees, Ray
Description
Given its significance in practice, piecewise linear taxation has received relatively little attention in the literature. This paper offers a simple and transparent analysis of its main characteristics. We fully characterize optimal tax parameters for the cases in which budget sets are convex and nonconvex respectively. A numerical analysis of a discrete version of the model shows the circumstances under which each of these cases will hold as a global optimum. We find that, given plausible...[Show more]
dc.contributor.author | Apps, Patricia | |
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dc.contributor.author | Long, Ngo | |
dc.contributor.author | Rees, Ray | |
dc.date.accessioned | 2015-12-10T22:38:49Z | |
dc.identifier.issn | 1467-9779 | |
dc.identifier.uri | http://hdl.handle.net/1885/56896 | |
dc.description.abstract | Given its significance in practice, piecewise linear taxation has received relatively little attention in the literature. This paper offers a simple and transparent analysis of its main characteristics. We fully characterize optimal tax parameters for the cases in which budget sets are convex and nonconvex respectively. A numerical analysis of a discrete version of the model shows the circumstances under which each of these cases will hold as a global optimum. We find that, given plausible parameter values and wage distributions, the globally optimal tax system is convex, and marginal rate progressivity increases with rising inequality. | |
dc.publisher | Blackwell Publishing Inc. | |
dc.source | Journal of Public Economic Theory | |
dc.title | Optimal Piecewise Linear Income Taxation | |
dc.type | Journal article | |
local.description.notes | Imported from ARIES | |
local.identifier.citationvolume | 16 | |
dc.date.issued | 2014 | |
local.identifier.absfor | 140215 - Public Economics- Taxation and Revenue | |
local.identifier.absfor | 140104 - Microeconomic Theory | |
local.identifier.ariespublication | u4430637xPUB379 | |
local.type.status | Published Version | |
local.contributor.affiliation | Apps, Patricia, University of Sydney | |
local.contributor.affiliation | Long, Ngo, College of Asia and the Pacific, ANU | |
local.contributor.affiliation | Rees, Ray, University of Munich | |
local.description.embargo | 2037-12-31 | |
local.bibliographicCitation.issue | 4 | |
local.bibliographicCitation.startpage | 523 | |
local.bibliographicCitation.lastpage | 545 | |
local.identifier.doi | 10.1111/jpet.12070 | |
dc.date.updated | 2020-12-27T07:31:38Z | |
local.identifier.thomsonID | 000339547000001 | |
Collections | ANU Research Publications |
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