earning_fun | R Documentation |
For an agent with quasi-linear iso-elastic utility, find the utility maximizing earning level.
earning_fun(n, elas, t1, t2, Tax, zstar)
n |
Ability of person (earnings with zero tax) |
elas |
elasticity of earnings w.r.t. net-of-tax rate |
t1 |
Tax rate before notch/kink |
t2 |
Tax rate after notch/kink |
Tax |
height of notch (zero for pure kink) |
zstar |
place of notch/kink (critical earning point) |
earn_funciton
is intended to simulate earnings of agents
under a kink or notch.
Optimal earning level.
util_calc
, bunch
earning_fun(1200,0.2,0.1,0.3,100,1000)
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