Progressive Income Taxation and Economic Growth with Endogenous Labor Supply andPublic Good

Abstract

This study builds an economic growth model of gender division labor, endogenous labor supply with nonlinear progressive income taxation.
The tax income is spent on supplying public goods. The economic system consists of one production sector and one public sector. The public
sector is financially supported by tax incomes. The model describes dynamic interactions of growth and gender division of labor with
progressive income taxation. 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 motion of the economic system.