Journal of Undergraduate Research
Keywords
big data approach, income taxation, replicating mirrless 1971
College
Family, Home, and Social Sciences
Department
Economics
Abstract
Optimal labor income taxation research has long relied on simplifying assumptions regarding the convexity of policy maker decisions in order to make the associated calculus of variations optimization problem analytically tractable. Furthermore, researchers have assumed that taxable agents have simplistic distributions of ability few degrees of heterogeneity. We developed a model that removes assumptions of convexity, while allowing the taxable agents to have more realistic distributions of wages as well as higher degrees of heterogeneity. In order to show the functionality of our model, we replicate the optimal taxation problem developed in Mirrlees 1971.
Recommended Citation
Quist, Kramer and Evans, Dr. Richard
(2016)
"A Big Data Approach to Optimal Income Taxation Replicating Mirrlees 1971,"
Journal of Undergraduate Research: Vol. 2016:
Iss.
1, Article 33.
Available at:
https://scholarsarchive.byu.edu/jur/vol2016/iss1/33