Comparing Elasticities-Based Optimal Income Tax Formulas

John T Revesz

Public Finance = Finances publiques, 1998, vol. 53, issue 3-4, 470-79

Abstract: This paper compares two explicit elasticities-based formulas for the income tax model of Mirrlees (1971)--one by Revesz (1989); the other by Saez (2001). The two formulas are very similar, but there are two minor differences. Analysis of these formulas can contribute to a better understanding of the difficulties in working out a precise solution for the non-linear income tax model, which is a unique variational problem with a circular argument, because the argument of the (tax) function to be optimized (income) is an endogenous variable, dependent on the optimal function itself.

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pfi:pubfin:v:53:y:1998:i:3-4:p:470-79

Access Statistics for this article

More articles in Public Finance = Finances publiques
Bibliographic data for series maintained by Christopher F. Baum ().