Dynamics of Capital, Discount Rate and Output According to the Levels of Taxation and Budget Overbalance
Анотація
The dynamic open economic system with capital growth equal to the investment without amortization is considered. Under the positive real rate it is shown that capital decreases with growing of the taxation level and increases with the growth of the budget overbalance, while the real discount rate exhibits the opposite tendency. It was also shown that the output is increasing the growth of the budget overbalance, but has ambiguous behavior with respect to thelevel of tax growth, which depends on the discount rate changing speed.
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