The name is absent



We turn next to the effects of tax coordination with rent creation discussed in
section 4.2. Assume that the equilibrium value of
W implied by (2.22), (4.6) and
(4.7) will indeed satisfy the recruitment constraint
W w. From these equations
and the assumption made in section 4.2 that
W = w initially, one can then show
that

dα   (ε∕τ)(1 α) {(α + δ)[1 γσc (1 α)] α (1 α)}

dτ                     ∆

dW =       ){(÷ ) Ga )—(÷-α )—-→'+δ)}

(∆∆^) [a + Yσc (a + δ)] ,

(A.19)


dr =    ') ∣2 α + α) [ʌ + ' + -¾U

dτ ∆                α 1 α 1+ δ

+й)


[γσc (α + δ) δ] ,


(A.20)


= —£k (1 α)∫2 α + fα+^ ) ∣-α- + γσc + ɪ]!

∖ α у 1 — α         1 + δ j


α [α + γσc (α + δ)] < 0,


(A.21)


W               u00

Y ≡-----=, σc ≡—C — ,

W + rk           u0


σg


g0

—α
g0


where σc is the coefficient of relative risk aversion in private consumption (which
is identical for private and public sector workers in the initial equilibrium) and
σg
is the coefficient of relative risk aversion in public consumption. As mentioned,
these results hold provided
W w. If this condition is satisfied initially, it will
continue to be met if
dWdw. Noting from (2.11) that dw∕dτ = k (1 + ddT)
and using (A.19) and (A.20), we find

k

J {δ + α [1 + α + γσc (α + δ)]}


dW dw
dτ dτ


—     /)     ^ + γσc (α + δ) + (α+δ Wτ¾ 1)1 .   (A.22)

α∆     1 α                α 1+ δ


The proof of Proposition 6 given in Appendix 3 utilises (A.21) and (A.22).


35




More intriguing information

1. What Contribution Can Residential Field Courses Make to the Education of 11-14 Year-olds?
2. Dynamiques des Entreprises Agroalimentaires (EAA) du Languedoc-Roussillon : évolutions 1998-2003. Programme de recherche PSDR 2001-2006 financé par l'Inra et la Région Languedoc-Roussillon
3. Hemmnisse für die Vernetzungen von Wissenschaft und Wirtschaft abbauen
4. Lending to Agribusinesses in Zambia
5. Surveying the welfare state: challenges, policy development and causes of resilience
6. The name is absent
7. The name is absent
8. Consumption Behaviour in Zambia: The Link to Poverty Alleviation?
9. The name is absent
10. Optimal Private and Public Harvesting under Spatial and Temporal Interdependence