Price level and average tax rate in general equilibrium model

Ananiashvili, Iuri (2016) Price level and average tax rate in general equilibrium model. In: The International Scientific Conference: “Challenges of Globalization in Economics and Business”. Universal, Tbilisi, pp. 56-60. ISBN 978-9941-22-884-1

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In this article, there is discussed aggregate demand and aggregate supply equilibrium LSK model, which is based on Laffer-Keynesian synthesis. Price level and average tax rate are simultaneously included as explanatory variables in both -aggregate demand and aggregate supply functions. This approach enables us to analyze two partial-LKST and LKSP-variants in one general LKS model framework. In LKST model endogenous variables are aggregate output and average tax rate, in LKSP model they are aggregate output and price level. Characteristics of both models are examined. We have shown that, when Laffer-Keynesian synthesis conditions are met there is a certain correlation between price level and average tax rate.

Item Type: Book Section
Uncontrolled Keywords: aggregate demand function; aggregate supply function; Laffer-Keynesian synthesis, average taxrate; price level; LKS model
Subjects: General Works
Divisions: Ivane Javakhishvili Tbilisi State University > Faculty of Economic and Business
Depositing User: თამარ ბაგრატიონი
Date Deposited: 25 Mar 2019 08:22
Last Modified: 25 Mar 2019 08:22

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