Investigation of fundamental cycles of economic activity and rebate time in winner-take-all systems
Abstract
We investigate the emergence of fundamental economic cycles of activity and rebate time with the introduction of taxes in winner-take-all systems. For systems with time-dependent rebates, which are distributed after a fixed period, economic activity and rebate time are found to be independent of initial income distribution and the fraction Ptax to be taxed per transaction. However, when the rebates are threshold-dependent, such that they are distributed when the accumulated tax reaches a particular fraction Prebate of the remaining wealth within a population, a tradeoff was determined between the fraction to be taxed and the threshold fraction of the remaining wealth. For the Ptax = 15% corresponding to real economic systems, the practice of distributing rebates according to a threshold contributes to significantly greater economic activity than when rebates are regularly distributed after a year or 260 (working days). Economic activity is optimal for higher values of Ptax and lower values of Prebate, while rebate time is independent of initial income distribution and population or wealth growth.
Downloads
Published
Issue
Section
License
By submitting their manuscript to the Samahang Pisika ng Pilipinas (SPP) for consideration, the Authors warrant that their work is original, does not infringe on existing copyrights, and is not under active consideration for publication elsewhere.
Upon acceptance of their manuscript, the Authors further agree to grant SPP the non-exclusive, worldwide, and royalty-free rights to record, edit, copy, reproduce, publish, distribute, and use all or part of the manuscript for any purpose, in any media now existing or developed in the future, either individually or as part of a collection.
All other associated economic and moral rights as granted by the Intellectual Property Code of the Philippines are maintained by the Authors.
