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Specifying the Allocation of Income among Taxes, Consumption, and Savings in Linear Programming Models
Author(s) -
Vandeputte J. M.,
Baker C. B.
Publication year - 1970
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1237259
Subject(s) - consumption (sociology) , flexibility (engineering) , economics , microeconomics , space (punctuation) , econometrics , production (economics) , computer science , social science , management , sociology , operating system
The proper specification of tax liabilities and consumption behavior is a significant problem in designing models for studying firm growth. A specification is suggested to represent allocation of income between consumption and savings in multiperiod linear programming models, while accounting for the effects of income tax. It is proposed as a method that conserves row space while providing flexibility in representing actual tax liabilities and actual consumption behavior in terms relevant for the study of growth alternatives and constraints.