earning_fun {bunchr}

Finding optimal earning under kinked/notched budget set

Description

For an agent with quasi-linear iso-elastic utility, find the utility maximizing earning level.

Usage

earning_fun(n, elas, t1, t2, Tax, zstar)

Arguments

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)

Details

earn_funciton is intended to simulate earnings of agents under a kink or notch.

Value

Optimal earning level.

See Also

util_calc, bunch

Examples

earning_fun(1200,0.2,0.1,0.3,100,1000)