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Service Good as an Intermediate Input and Optimal Government Policy in an Endogenous Growth Model
South Asian Journal of Macroeconomics and Public Finance Pub Date : 2019-04-30 , DOI: 10.1177/2277978719837043
Senjuti Gupta 1 , Bidisha Chakraborty 2 , Tanmoyee Banerjee (Chatterjee) 2
Affiliation  

The present article considers an endogenous growth model in which the service output is used as intermediate good in commodity sector, tax is imposed on manufacturing product and the revenue earned is invested to create human capital. It is shown that there exists a unique, saddle path stable steady-state growth rate of human capital accumulation and a unique growth-maximizing tax rate. The optimal tax rate for the command economy is compared with growth-maximizing tax rate in competitive economy. A numerical analysis shows that the command economy will have a higher growth rate than the competitive economy. An extension of the model where households privately spend for accumulation of human capital yields the same growth rate as that of the command economy of the previous model. JEL Classification: E6, H2, O4

中文翻译:

内生增长模型中的服务产品作为中间投入和最优政府政策

本文考虑了一种内生增长模型,其中服务输出被用作商品部门的中间商品,对制造产品征税,所赚取的收入用于创造人力资本。结果表明,人力资本积累具有唯一的,稳定的稳态路径,并且具有唯一的最大化增长的税率。将命令经济的最优税率与竞争经济中的增长最大化税率进行比较。数值分析表明,命令经济的增长速度将高于竞争经济。家庭的私人支出用于积累人力资本的模型的扩展产生了与先前模型的命令经济相同的增长率。JEL分类:E6,H2,O4
更新日期:2019-04-30
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