Abstract
First of all, catch a glimpse of budget dynamics. The government goes shopping for a specified quantity of goods and services per head G = gN with g = const. In addition the government imposes a lumpsum tax T = tN with t = const. After some manipulations, this yields D+1 = D + gN + rD − tN. Taking the same avenue as in the preceding sections. the short-run equilibrium can be enshrined in a system of five equations:
Here α, β, δ, g, n, r, t, D and N are exogenous, whereas D+1, F+1, K, N+1 and Y are endogenous.
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© 1995 Physica-Verlag Heidelberg
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Carlberg, M. (1995). Fixed Tax Per Head. In: Sustainability and Optimality of Public Debt. Contributions to Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-642-46965-7_17
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DOI: https://doi.org/10.1007/978-3-642-46965-7_17
Publisher Name: Physica-Verlag HD
Print ISBN: 978-3-7908-0834-6
Online ISBN: 978-3-642-46965-7
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