@TechReport{iza:izadps:dp6007,
            	author={Apps, Patricia and Long, Ngo Van and Rees, Ray},
            	title={Optimal Piecewise Linear Income Taxation},
            	year={2011},
	month={Oct},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={6007},
            	url={https://www.iza.org/publications/dp6007},
	abstract={Given its significance in practice, piecewise linear taxation has received relatively little attention in the literature. This paper offers a simple and transparent analysis of its main characteristics. We fully characterize optimal tax parameters for the cases in which budget sets are convex and nonconvex respectively. A numerical analysis of a discrete version of the model shows the circumstances under which each of these cases will hold as a global optimum. We find that, given plausible parameter values and wage distributions, the globally optimal tax system is convex, and marginal rate progressivity increases with rising inequality.},
	keywords={taxation;piecewise linear;income},
            }