Optimal Income Taxation: An Example with a U-Shaped Pattern of Optimal Marginal Tax Rates.

S-Tier
Journal: American Economic Review
Year: 1998
Volume: 88
Issue: 1
Pages: 83-95

Authors (1)

Diamond, Peter A (not in RePEc)

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using the Mirrlees optimal income tax model with quasi-linear preferences, the paper examines conditions for marginal tax rates to be rising at high income levels and declining in an interval containing the modal skill. It examines conditions for the marginal tax rate to be higher at a low skill level than at the high skill level with the same density--an argument only holding for skill levels above a cutoff where resources of a worker are marginally of the same value as resources of the government. Data on earnings rates are presented. Copyright 1998 by American Economic Association.

Technical Details

RePEc Handle
repec:aea:aecrev:v:88:y:1998:i:1:p:83-95
Journal Field
General
Author Count
1
Added to Database
2026-01-25