GROWTH WITH PROGRESSIVE INCOME TAXATION AND PUBLIC GOOD IN AN EXTENDED

Abstract

ABSTRACT This study builds an economic growth model of nonlinear progressive income taxation with gender division labor, endogenous labor supply with. The economy has one industrial and one public sector. The tax income is spent on supplying public goods. The model describes dynamic interactions between saving, taxation, gender-based preferences, and growth. We simulate the model to demonstrate existence of equilibrium and motion of the dynamic system. We also examine effects of changes in different parameters on the long-term economic growth. Keywords Progressive Income Taxation; Economic Growth; Gender Division of Labor; Public Good