scholarly journals Ramsey Taxation in the Solow-Uzawa Growth Model with Public Goods

2020 ◽  
Vol 2 (2) ◽  
pp. 25-38
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Public Sector ◽  
Public Goods ◽  
Growth Model ◽  
Consumer Goods ◽  
Capital Accumulation ◽  
Optimal Taxation ◽  
Tax Rates ◽  
Capital Goods ◽  
The Public ◽  
Neoclassical Growth

This paper examines issues related to optimal taxation similar to those addressed by Ramsey in his celebrated 1927 paper. Rather than determining taxes on commodities with given revenue to minimize the decrement of utility may be minimum in the Ramsey approach, this model determines optimal taxation to maximize utility with revenue as endogenous variable. We analyze optimal taxation in neoclassical growth theory. We introduce a public sector to the Solow-Uzawa neoclassical growth model. The economy is composed of the public, capital goods and consumer goods sectors. Public goods enter into the utility function. The public sector is financially supported by the government’s revenue from taxing consumption of capital goods and consumer goods. We derive the optimal taxation rule and construct the dynamics of the national economy. The model describes nonlinear dynamic interactions among national and sectoral growth, economic structural change, wealth/capital accumulation, and optimal tax rates in perfect competitive markets with the government intervention. We carry out comparative analysis to analyze effects of changes in some parameters on the tax rates and other economic variables.

scholarly journals Optimal Taxation in the Solow-Uzawa Growth Model with Public Goods

2020 ◽  
Vol 10 (3(S)) ◽  
pp. 1-11
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Public Sector ◽  
Growth Model ◽  
Capital Accumulation ◽  
Optimal Taxation ◽  
Tax Rates ◽  
The Public ◽  
Model Studies ◽  
Goods And Services ◽  
The Government ◽  
Parameter Values

This paper makes an original contribution to the literature of optimal taxation by introducing Ramseytaxation to the Solow-Uzawa growth model to examine genuine dynamic interdependence between growth andoptimal taxation. We introduce a public sector to the Uzawa two-sector growth model. The public sector suppliespublic goods and services. The government financially supports by the public sector by collecting taxes on thehousehold’s wage income and wealth income under the assumption that the utility level is maximized. We derivethe optimal taxation rule and construct the dynamics of the national economy. The model studies a nonlineardynamics between national and sectoral growth, economic structural change, wealth/capital accumulation, andoptimal tax rates in perfect competitive markets with the government intervention. The model has a uniquestable equilibrium point with the chosen parameter values. We carry out comparative dynamic analysis toanalyze effects of exogenous changes in a few parameters on the transitional process and long-term economicstructure of the economic dynamics.

The Relative Size of the Public Sector and the Tax Burden in a Neoclassical Growth Model

1976 ◽  
Vol 78 (3) ◽  
pp. 413 ◽  
Author(s):  
Erik Gørtz ◽  
Jørgen Drud Hansen ◽  
Erik Gortz ◽  
Jorgen Drud Hansen
Keyword(s):  
Public Sector ◽  
Growth Model ◽  
Relative Size ◽  
Tax Burden ◽  
Neoclassical Growth Model ◽  
The Public ◽  
Neoclassical Growth

scholarly journals Productivity Growth and Public Sector Employment

1998 ◽  
Vol 42 (2) ◽  
pp. 73-79
Author(s):  
Kong Weng Ho ◽  
Hian Teck Hoon
Keyword(s):  
Public Sector ◽  
Growth Model ◽  
Productivity Growth ◽  
Elasticity Of Substitution ◽  
Neoclassical Growth Model ◽  
High Productivity ◽  
The Public ◽  
Public Sector Employment ◽  
Neoclassical Growth ◽  
Public Share

Our model endogenizes the share of public sector employment in a neoclassical growth model. Under the assumptions that public sector production is labor intensive and the elasticity of substitution between capital and labor is less than one, the public share of employment is shown to decline with a rise in capital per effective worker. Our theory predicts that periods of high productivity growth are associated with a rising trend of the public share of employment. This prediction conforms well with U.S. experience from 1950–1995.

Voluntary cooperation of citizens in the community model of public service delivery

2020 ◽  
Author(s):  
Beáta MIKUŠOVÁ ◽  
Nikoleta JAKUŠ ◽  
Marián HOLÚBEK
Keyword(s):  
Public Sector ◽  
Service Delivery ◽  
Public Goods ◽  
Public Service ◽  
Public Services ◽  
Revealed Preferences ◽  
Public Service Delivery ◽  
Continuous Increase ◽  
The Public ◽  
Community Model

Most of the developed countries have implemented new principles of public sector reform – new approaches to the management of the public sector. A major feature of the new public management (NPM) is the introduction of market type mechanisms (MTM) to the running of public service organizations: the marketization of the public service. The marketization of public services aims at a continuous increase in public expenditure efficiency, continual improvements in public services quality, the implementation of the professional management tools in the public sector, and last but not least, charge for public services. Price of public services in mainstream economics theory is connected with preference revelation problem. Economic models explain the relationship between consumer behavior (revealed preferences) and the value of public goods, and thus determine the value of the goods themselves. The aim of the paper is to determine the success of the community model of public service delivery based on the demonstrated preferences of individuals in the consumption of public services / public goods. The direct way of determining the preferences of individuals was used in this paper (willigness to pay and willigness to accept). These preferences will be identified based on the crowdfunding campaign as an example of community model of public goods provision by using survey experiment method. The willingness of individuals to pay is dependent on the individual's relationship with the organisation, the organisation's employees, or sympathise with those for whom the collection is, for whom the project is designed.

Public Goods and the Public Sector.

Economica ◽  
1973 ◽  
Vol 40 (159) ◽  
pp. 337
Author(s):  
Alan Marin ◽  
Maurice Peston ◽  
G. K. Shaw ◽  
Frank J. B. Stilwell ◽  
G. H. Peters
Keyword(s):  
Public Sector ◽  
Public Goods ◽  
The Public

The State and Capital Accumulation in Mexico

1978 ◽  
Vol 10 (2) ◽  
pp. 263-282 ◽  
Author(s):  
E. V.K. Fitzgerald
Keyword(s):  
Public Sector ◽  
Capital Accumulation ◽  
State Intervention ◽  
Second World War ◽  
The State ◽  
Economic Activities ◽  
The Public ◽  
Significant Case ◽  
The 1960S ◽  
Second World

The economic activities of the state have rightly been regarded as a crucial factor in the remarkably rapid process of capitalist expansion experienced by Mexico in the two decades after the Second World War, and must also be seen as such in the imbalance that has emerged over the last ten years –an imbalance that itself led to an accelerated growth of the public sector. State intervention in the process of capital accumulation during the period of dependent import-substituting industrialization is common to the experience of Latin America as a whole, but in Mexico the scale and scope of this intervention appear to have been greater than elsewhere, generating an important debate over the size of the Mexican public sector in the 1960s, and now providing a significant case to be examined in the light of current discussions as to the relative autonomy of the state in capitalist economies.

Micro-Foundations of Religion and Public Goods Provision: Belief, Belonging, and Giving in Catholicism and Islam

2015 ◽  
Vol 8 (4) ◽  
pp. 718-744 ◽  
Author(s):  
Ramazan Kılınç ◽  
Carolyn M. Warner
Keyword(s):  
Public Sector ◽  
Social Welfare ◽  
Public Goods ◽  
Positive Affect ◽  
Structured Interviews ◽  
Public Goods Provision ◽  
The Public ◽  
The Relationship ◽  
Micro Foundations

AbstractWhile debates continue about the relationship between state-provided social welfare and religious charities, and whether organized religions are more capable of providing social welfare than is the public sector, less attention has focused on the question of what motivates religious adherents to contribute to the charitable work of their religions. In this article, we examine how adherents of Catholicism and Islam understand their generosity and its relationship to their faith. Through 218 semi-structured interviews with Catholics and Muslims in four cities in France, Ireland, Italy, and Turkey, we find systematic differences between the two religions. Catholics emphasize love of others and Muslims emphasize duty to God. We also find, contrary to expectations of the literature that emphasizes monitoring and sanctioning within groups to obtain cooperation, that Catholics and Muslims see their generosity as also motivated by the positive affect they feel towards their respective communities.

scholarly journals ELEMENTS OF THE NEOCLASSICAL GROWTH THEORY

2014 ◽  
Author(s):  
Florina Popa
Keyword(s):  
Economic Growth ◽  
Growth Model ◽  
Technical Progress ◽  
Capital Accumulation ◽  
Growth Theory ◽  
Economic Science ◽  
Growth Phenomenon ◽  
New Guidelines ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth

One of the relevant components of the contemporary economic science is the economic growth theory, the economic background of the time leading to new guidelines of the research. The neoclassical growth theory - the core of modern analysis - explains how the capital accumulation and technological changes affect the economy, significant for the analysis of the economic growth process being the Solow’s neoclassical growth model. The paper brief describes the elements of the economic growth model developed by Solow, both for the situation when it allows the explanation of extensive growth and that wherein the growth is of intensive nature, as a result of the intervention of exogenous technical progress – a determinant of factors productivity growth. It is highlighted the importance of the exogenous neoclassical model, proposed by Solow, who showed the determinant role of the technical progress in the economic growth phenomenon.

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