THE CHAOTIC AGRICULTURAL MONOPOLY OUTPUT GROWTH MODEL AND CORPORATION TAX
Keywords:
Agricultural Monopoly Firm, Agricultural Output, Chaos, Corporation TaxAbstract
The basic aim of this paper is to construct a relatively simple chaotic agricultural monopoly's output growth model that is capable of generating stable equilibria, cycles, or chaos. A key hypothesis of this work is based on the idea that the coefficient π= f ( 1 –n ) (a – d) plays a crucial role in explaining local stability of the agricultural monopoly's output where, d – the coefficient of the total cost function of the agricultural monopoly's firm, a - the coefficient of the inverse demand function, n - the corporation tax rate, f – the coefficient which denotes relation between the after –tax profit of the agricultural monopoly firm in period t, and the output of the agricultural monopoly firm in period t+1.
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