# Double limit analysis of optimal personal income taxation

Double limit analysis of optimal personal income taxation Oxford Economic Papers, 70(3), 2018, 917 doi: 10.1093/oep/gpy014 Advance Access Publication Date: 17 April 2018 Corrigendum Double limit analysis of optimal personal income taxation By Michael Sattinger Department of Economics, University at Albany, Albany, NY 12222, USA; e-mail m.sattinger@albany.edu Oxford Economic Papers, 70(1), 2018; 93–113. doi: 10.1093/oep/gpx026 In the final version of the manuscript “Double Limit Analysis of Optimal Personal Income Taxation”, 10.1093/oep/gpx026 , which was published in Oxford Economic Papers, Volume 70, Issue 1, 1 January 2018, Pages 93–113, there was an error in Table 1. Below is the explanation of the error. In Table 1, the entry for the Tax Level in the interval y to y þ e should be t[y]þ 1 1 (k  1)(t[y þ e] t[y ]) instead of t[y]þ k (t[y þ e] t[y ]). The amount k (t[y þ e] t[y ]) is 1 1 1 1 1 1 1 1 1 the difference between the tax level at y þe and the tax level at y with the perturbation at y , 1 1 1 whereas the amount (k  1)(t[y þ e] t[y ]) is the difference between the tax level at y þ e with 1 1 1 1 the perturbation and the tax level at y þ e without the perturbation. The latter amount correctly measures the increase in the tax level at each income from y þ e to the maximum income as a result of the perturbation. The error does not affect the results of the double limit analysis, which only depends on the derivatives of the tax levels and marginal tax rates evaluated at k ¼ 1. However, the tax levels appear in Section 2.3 on the second order conditions, in which k is kept unequal to 1. In that section, the terms in k  1 disappear in the limit as e approaches zero, so that the analysis of second order conditions remains valid. The author apologizes for this error. Appendix 1, with detailed derivations, has been revised to show the steps in the analysis of second order conditions. V C Oxford University Press 2018 All rights reserved 917 Downloaded from https://academic.oup.com/oep/article-abstract/70/3/917/4975525 by Ed 'DeepDyve' Gillespie user on 20 June 2018 http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Oxford Economic Papers Oxford University Press

# Double limit analysis of optimal personal income taxation

, Volume Advance Article (3) – Apr 17, 2018
1 page

1 Page

/lp/ou_press/double-limit-analysis-of-optimal-personal-income-taxation-mT0RHTBlVh
Publisher
Oxford University Press
ISSN
0030-7653
eISSN
1464-3812
D.O.I.
10.1093/oep/gpy014
Publisher site
See Article on Publisher Site

### Abstract

Oxford Economic Papers, 70(3), 2018, 917 doi: 10.1093/oep/gpy014 Advance Access Publication Date: 17 April 2018 Corrigendum Double limit analysis of optimal personal income taxation By Michael Sattinger Department of Economics, University at Albany, Albany, NY 12222, USA; e-mail m.sattinger@albany.edu Oxford Economic Papers, 70(1), 2018; 93–113. doi: 10.1093/oep/gpx026 In the final version of the manuscript “Double Limit Analysis of Optimal Personal Income Taxation”, 10.1093/oep/gpx026 , which was published in Oxford Economic Papers, Volume 70, Issue 1, 1 January 2018, Pages 93–113, there was an error in Table 1. Below is the explanation of the error. In Table 1, the entry for the Tax Level in the interval y to y þ e should be t[y]þ 1 1 (k  1)(t[y þ e] t[y ]) instead of t[y]þ k (t[y þ e] t[y ]). The amount k (t[y þ e] t[y ]) is 1 1 1 1 1 1 1 1 1 the difference between the tax level at y þe and the tax level at y with the perturbation at y , 1 1 1 whereas the amount (k  1)(t[y þ e] t[y ]) is the difference between the tax level at y þ e with 1 1 1 1 the perturbation and the tax level at y þ e without the perturbation. The latter amount correctly measures the increase in the tax level at each income from y þ e to the maximum income as a result of the perturbation. The error does not affect the results of the double limit analysis, which only depends on the derivatives of the tax levels and marginal tax rates evaluated at k ¼ 1. However, the tax levels appear in Section 2.3 on the second order conditions, in which k is kept unequal to 1. In that section, the terms in k  1 disappear in the limit as e approaches zero, so that the analysis of second order conditions remains valid. The author apologizes for this error. Appendix 1, with detailed derivations, has been revised to show the steps in the analysis of second order conditions. V C Oxford University Press 2018 All rights reserved 917 Downloaded from https://academic.oup.com/oep/article-abstract/70/3/917/4975525 by Ed 'DeepDyve' Gillespie user on 20 June 2018

### Journal

Oxford Economic PapersOxford University Press

Published: Apr 17, 2018

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