The Simple General Equilibrium Model with Pure Public Intermediate Good for a Growing Open Small Economy
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- Terasaki Katsushi
- 杏林大学
Bibliographic Information
- Other Title
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- 成長する小国開放経済のための純粋公共中間財を含む単純な一般均衝モデル
Abstract
The purpose of this article is to construct a simple general equilibrium model with pure public good and endogenous factor income tax based on the Lindahl pricing rule. The system is stable and the production possibility curve is strictly concave to the origin if the factor augmenting functions are proportional to each other.<BR>The main conclusion is that almost all propositions, e.g., Baumol (1967) 's hypothesis and Wagner's law, depend upon the sign of the tax rate elasticity of public input. One of the interesting results is that foreign aid as categorical grants to public sector is harmful in such an economy where Wagner's law holds as of physical factor augmentation.
Journal
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- Public Choice Studies
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Public Choice Studies 1989 (13), 35-50, 1989
JAPAN PUBLIC CHOICE SOCIETY
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Details 詳細情報について
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- CRID
- 1390001205357668736
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- NII Article ID
- 130003818155
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- ISSN
- 18846483
- 02869624
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- Data Source
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- JaLC
- CiNii Articles
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- Abstract License Flag
- Disallowed