Journal Title
Title of Journal: Int Tax Public Finance
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Abbravation: International Tax and Public Finance
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Authors: Matti Tuomala
Publish Date: 2009/06/16
Volume: 17, Issue: 3, Pages: 259-270
Abstract
We use the standard Mirrlees Review of Economics Studies 38175–208 1971 structure but replace the utility functions used in previous simulations with a quadratic utility of consumption with a bliss point This greatly reduces the curvature of the utility function over consumption Our simulations demonstrate that this would then lead to an increasing marginal tax rate structure over a wide range of wage levels
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