The Impact of Changing Skill Levels on Optimal Nonlinear Income Taxes

Craig Brett () and John Allan Weymark ()

No 708, Working Papers from Department of Economics, Vanderbilt University

Abstract: The impact of changing an individual's skill level on the solution to a finite population version of the Mirrlees optimal nonlinear income tax problem with quasilinear-in-leisure preferences is investigated. It is shown that it is possible to sign the directions of change in everyone's optimal consumptions and optimal marginal tax rates in response to such a change.

Keywords: Optimal income taxation; comparative statics (search for similar items in EconPapers)
JEL-codes: D82 H21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pbe
Date: 2007-05
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http://www.vanderbilt.edu/Econ/wparchive/workpaper/vu07-w08R.pdf Revised version, 2007 (application/pdf)

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Journal Article: The impact of changing skill levels on optimal nonlinear income taxes (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:van:wpaper:0708

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