Economics, Econometrics and Finance
4 years ago

Government tax increases stabilize market prices, benefiting regional economic development.

Mathematical Problems in Engineering
An Empirical Study of a Mathematical Model for Influence of Government Tax on the Price Behavior and the Stability of Market Price
Fenglian Wang, Chia‐Huei Wu, Sang‐Bing Tsai, Yi-Zhang Jiang

Paper Summary

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The article explores how government taxes can affect market prices and stability. By using a mathematical model based on competition theory and chaos control, the researchers found that higher government tax rates can help stabilize market prices by reducing price fluctuations and chaos in the system. This means that government taxes can play a role in keeping market prices steady and predictable, which is important for the overall economy.