Dynamic Analysis of Progressive Income Taxation and Economic Growth with Endogenous Labor Supply and Public Goods

Abstract

This research advances the development of a sophisticated economic growth model that intricately integrates gender-differentiated labor, endogenous labor supply, and nonlinear progressive income taxation, with the latter's revenues earmarked for public goods provision. Anchored in a framework that encompasses both a production and a public sector financed through taxation, the model delves into the complex interplay among economic growth, the gender division of labor, and progressive income taxation. By employing rigorous simulation techniques, this study meticulously examines the conditions for equilibrium existence and investigates the system's dynamics in response to various parametric alterations. This exploration not only sheds light on the theoretical underpinnings of economic growth and taxation but also offers insights into the policy implications of gender-differentiated labor contributions within the economy.