Sattinger, Michael
Double limit analysis of optimal personal income taxation / by Michael Sattinger .-- , 2018
Disponible en formato electrónico a través de la Biblioteca del IEF.
Resumen.
A double limit analysis is developed to determine the optimal personal income tax based on the principle that moving a marginal dollar of tax revenue from one income interval to another should not raise social welfare. The first order condition can be differentiated with respect to an interval boundary to yield a second order differential equation for the optimal income tax that can be solved to yield specific solutions. Application of an optimal income tax to a broader income range in general reduces tax revenues and requires greater subsidies at low-income levels. Optimal solutions are provided assuming Cobb-Douglas or Constant Elasticity of Substitution (CES) utility
and lognormal or Pareto productivity distributions.
RENTA
IMPUESTOS
IMPOSICION OPTIMA
BIENESTAR SOCIAL
Oxford Economic Papers 0030-7653 v. 70, n. 1, January 2018, p. 93-113
Double limit analysis of optimal personal income taxation / by Michael Sattinger .-- , 2018
Disponible en formato electrónico a través de la Biblioteca del IEF.
Resumen.
A double limit analysis is developed to determine the optimal personal income tax based on the principle that moving a marginal dollar of tax revenue from one income interval to another should not raise social welfare. The first order condition can be differentiated with respect to an interval boundary to yield a second order differential equation for the optimal income tax that can be solved to yield specific solutions. Application of an optimal income tax to a broader income range in general reduces tax revenues and requires greater subsidies at low-income levels. Optimal solutions are provided assuming Cobb-Douglas or Constant Elasticity of Substitution (CES) utility
and lognormal or Pareto productivity distributions.
RENTA
IMPUESTOS
IMPOSICION OPTIMA
BIENESTAR SOCIAL
Oxford Economic Papers 0030-7653 v. 70, n. 1, January 2018, p. 93-113