On the Continuity of Optimal Income-Tax Schedules
1985 (English)Report (Other academic)
This note develops a simple geometric argument suggesting that there to every budget function in Mirrlees' model of optimal income taxation exists a continuous (and non-decreasing) bduget function which achieves the same welfare distribution and individual allocations. Hence, without loss of generality, one may already at the outset assume otpimal tax schedules, if such exist, to be continuous and non-decreasing. The result is derived under somewhat more general conditions than those in Mirrlees (1971).
Place, publisher, year, edition, pages
Stockholm: IIES , 1985. , 11 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 338
IdentifiersURN: urn:nbn:se:su:diva-41510OAI: oai:DiVA.org:su-41510DiVA: diva2:330819