Description Usage Arguments Value Examples

*u(z,n,elas,t1,t2,Tax,zstar) =*

*z * (1 - t1) + [z > zstar] * ((z - zstar)
* (t2 - t1) - Tax) - n / (1 + (1 / elas)) * (z / n)^(1 + (1 / elas))*

1 | ```
util_calc(z, n, elas, t1, t2, Tax, zstar)
``` |

`z` |
Earnings |

`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) |

The utility of earning sum z given other parameters.

1 | ```
util_calc(900, 950, 0.2, 0.1, 0.2, 100, 1000)
``` |

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