Revolutionary Tax Model Boosts Public Goods Investment for Economic Growth
The article explores how different types of taxes can be used to promote optimal investment in public goods in an economy with growth. By using a mix of income taxes and flat-rate taxes, the model ensures steady economic growth and efficient allocation of resources. The researchers show that the growth rate can be determined by specific coefficients, and that public sector externalities play a crucial role in sustaining growth. This approach simplifies the calculation of taxes over time, leading to better economic outcomes.