uu.seUppsala University Publications
Change search
ReferencesLink to record
Permanent link

Direct link
Using the Discrete Model to Derive Optimal Income Tax Rates
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2015 (English)In: Finanzarchiv, ISSN 0015-2218, E-ISSN 1614-0974, Vol. 71, no 1, 106-117 p.Article in journal (Refereed) Published
Abstract [en]

I demonstrate how the discrete model of optimum income taxation can be used to derive the structure of optimal income tax rates. I compare simulations of the discrete and continuous models of optimum income taxation under identical circumstances, based on U.S. wage data. The two models produce similar results once the number of types used to represent the skill distribution is sufficiently large. Whether the discrete or the continuous model is used, in order to accurately capture the shape of the optimal schedule of marginal tax rates, a large number of taxpayers should be employed.

Place, publisher, year, edition, pages
2015. Vol. 71, no 1, 106-117 p.
Keyword [en]
optimum income taxation, simulations, computational methods
National Category
URN: urn:nbn:se:uu:diva-255311DOI: 10.1628/001522115X14206439673134ISI: 000353859000005OAI: oai:DiVA.org:uu-255311DiVA: diva2:822365
Available from: 2015-06-16 Created: 2015-06-15 Last updated: 2015-06-16Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Bastani, Spencer
By organisation
Department of Economics
In the same journal

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 324 hits
ReferencesLink to record
Permanent link

Direct link