A Model of Economic Growth, Including Taxation and Public Sector

Abstract:

An AK model of endogenous growth model is looked into. The production function is given by , where . In the model, the integral utility function was maximized for the set rate of tax . For the estimated rates of economic growth, the rate of tax has been determined so that it would maximize the rates of economic growth. The values of parameters  and have been calculated for Russia, the UK, Germany and France.

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