View source: R/notch_equation.R

notch_equation | R Documentation |

Defines indifference condition based on parametric utility function in notch setting. Used to parametrically solve for elasticity.

notch_equation(e, t0, t1, zstar, dzstar)

`e` |
elasticity. |

`t0` |
numeric value setting the marginal (average) tax rate below zstar in a kink (notch) setting. |

`t1` |
numeric value setting the marginal (average) tax rate above zstar in a kink (notch) setting. |

`zstar` |
a numeric value for the the bunching point. |

`dzstar` |
The distance of the marginal buncher from zstar. |

`util_diff`

returns the difference in utility between zstar and z_I in notch setting.

`bunchit`

`elasticity`

notch_equation(e = .04, t0 = 0, t1 = .2, zstar = 10000, dzstar = 50)

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