Taxes, profits, and employment: a structural axiomatic analysis
AbstractStandard economics is regarded as the theory of the market system. Profit is the pivotal phenomenon of this system. Contrary to expectations, though, profit is neither well defined not fully understood. The frailty of the theoretical core is passed on to the subfields. This paper provides a consistent definition of profit and applies it to the analysis of the effects of the government sector’s budget on employment and the profitability of the business sector. Since the formal point of departure is different from the standard approach it is quite natural that we arrive at new conclusions in some fundamental issues.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 43581.
Date of creation: 31 Jan 2012
Date of revision:
new framework of concepts; structure-centric; axiom set; profit ratio; market clearing prices; consumer optimum; balanced budget; budget deficit; full employment; Haavelmo-Theorem;
Find related papers by JEL classification:
- H40 - Public Economics - - Publicly Provided Goods - - - General
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- E20 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert E. Hall, 2011.
"The Long Slump,"
American Economic Review,
American Economic Association, vol. 101(2), pages 431-69, April.
- Tomasson, Gunnar & Bezemer, Dirk J, 2010. "What is the Source of Profit and Interest? A Classical Conundrum Reconsidered," MPRA Paper 20320, University Library of Munich, Germany.
- Kakarot-Handtke, Egmont, 2011. "Unemployment out of nowhere," MPRA Paper 32257, University Library of Munich, Germany, revised 15 Jul 2011.
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