ARTÍCULO
TITULO

QUANTIFYING OPTIMAL POLICY IN AN ENDOGENOUS MODEL: A THEORETICAL ANALYSIS

Ahmed Bellakhdhar    

Resumen

The subject matter of research is the examination of the optimal public policy in an R&D-based endogenous growth model with monopolistic supply of intermediate goods. The goal of the work is to study whether an adequate government intervention can provide the required incentives to correct market inefficiencies and make the decentralized economy to replicate the optimal solutions attainable by a social planner. The article solves the following tasks: finding the model economy?s decentralized equilibrium and social optimal solution, comparison of the welfare effects of different fiscal variables, consideration of the different market distortions and the choice of the appropriate policy variables that allow the decentralized economy to achieve sustainable optimal growth. Methods of mathematical formulation, theoretical analysis and economic interpretations have been used.  The following results were obtained: the first-best optimum can be decentralized by means of a tax on capital income at a constant rate combined with equality between the share of public spending in the total expenditure on education and the tax on labor income and a time-varying subsidy to R&D. Conclusions. Investments in knowledge-capital are the principal determinants of economic development. Our model incorporates three sources of inefficiency: monopolistic competition in the intermediate-goods sector, duplication externalities and spillovers in R&D. To correct these imperfections and achieve sustainable optimal growth, the intervention of the state by an effective fiscal policy is necessary.

 Artículos similares

       
 
Chi-Feng Chen, Chia-Chun Ho and Hsiu-Feng Liu    
When implementing nonpoint source pollution control plans, the size or number of required controlling facilities is a very practical issue. However, quantifying nonpoint source pollution is difficult because it is generated by variable and random rainfal... ver más
Revista: Applied Sciences

 
Jinsheng Wang, Shihao Xue and Guoji Xu    
To facilitate the establishment of the probabilistic model for quantifying the vulnerability of coastal bridges to natural hazards and support the associated risk assessment and mitigation activities, it is imperative to develop an accurate and efficient... ver más
Revista: Infrastructures

 
Marie-Eve Will, Yannick Cornet, Talat Munshi     Pág. 651 - 669
The space ?consumed? by various urban passenger transport modes varies greatly depending on the size and the speed of vehicles. Past studies have shown that public transport (PT) and non-motorized transport (NMT) can be up to 20 times more space-efficien... ver más

 
Xiaoteng Han, Enli Lü, Huazhong Lu, Fanguo Zeng, Guangjun Qiu, Qiaodong Yu and Min Zhang    
Since the first proposal to use spray-dried porcine plasma (SDPP) as an animal-based protein source feed additive for piglets in the late 1980s, a large number of studies have been published on the promotion effect of SDPP on piglets. SDPP contains biolo... ver más
Revista: Applied Sciences

 
Romain Azaïs    
Self-nested trees present a systematic form of redundancy in their subtrees and thus achieve optimal compression rates by directed acrylic graph (DAG) compression. A method for quantifying the degree of self-similarity of plants through self-nested trees... ver más
Revista: Algorithms