خلاصة:
This paper focuses on the impacts of oil revenues on government fiscal
policy when we have externality of human capital in economic.
Therefore, we devised a fiscal policy capable to make the decentralized
economy to achieve the first-best equilibrium in the Uzawa-Lucas model.
The results of this paper show that optimal policy requires making use of a
subsidy to investment in human and physical capital. Human capital can be
financed by oil revenues and tax on labor income and physical capital can
be financed by oil revenues. Government size dependent to oil revenues:
When share of oil revenue in GDP or ratio of oil revenue in physical capital
increase, government size increases and conversely. The results show the
return on the physical capital must be free of taxes, but tax on labor income
needed to balance the government budget in the steady state or in the
transitional phase.
ملخص الجهاز:
The purpose of this paper is to devise a fiscal policy when governments have oil revenue and externality of human capital exist in economy.
From first order conditions we obtain 1 – r ρ /θ (13) By profit maximiz, the labor and capital are used up to the point at which {مراجعه شود به فایل جدول الحاقی} By substituting the expression from (12b) into (12d) and Eq (17) to (20) we can obtain the growth rate of u as follows: 1 – (21) For a given policy path, the system (3), (14), (16) and (20) determines the dynamics of the decentralized economy.
N gu=0 gN=0 1 u* u Figure 2: Phase Diagram in the (u, N) - Space gN=0 r 82/ Optimal Fiscal Policy with Oil Revenues {مراجعه شود به فایل جدول الحاقی} N 0 1 1 /// gN=0 N 0 1 1 /// gN=0 Figure 3: Phase diagram in the (OK, N)-space Proposition 1: The steady state of the optimal-growth problem in the Uzawa-Lucas model when large share of government revenues comes selling a government owned exhaustible natural resources such as oil and average human capital has an external effect on productivity is a saddle-point.
4 Conclusion In this paper we focus on the impact of oil revenue on government fiscal policy when we have externality of human capital in economic.