Taxes and stability of income growth in tractor production

Abstract

Chaos theory attempts to reveal structure in aperiodic, unpredictable dynamic systems. Deterministic chaos refers to irregular or chaotic motion that is generated by nonlinear systems. Chaos embodies three important principles: (i) extreme sensitivity to initial conditions; (ii) cause and effect are not proportional; and (iii) nonlinearity. The basic aim of this paper is to provide a relatively simple chaotic income 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 = β/β-α plays a crucial role in explaining local stability of income in the tractor production, where: α = ΔYd/ΔL and β = Yd/L (Δ - increase, L - labour engaged in the tractor production, and Yd - the real disposable income in the tractor production).

Teorija haosa analizira strukturu aperiodičnih, nepredvidivih sistema. Deterministički haos se odnosi na iregularno ili haotično kretanje koje generišu nelinearni sistemi. Haos uključuje tri značajna principa: (i) ekstremnu senzitivnost na početne uslove; (ii) uzrok i posledica nisu proporcionalni; i (iii) nelinearnost. Osnovni cilj ovog rada je pruži relativno jednostavan model haotičnog rasta dohotka u proizvodnji traktora koji ima mogućnost da generiše stabilnu ravnotežu, ciklus ili haos. Ključna hipoteza ovog rada se zasniva na ideji da koeficijent π = β/β-α igra ključnu ulogu u objašnjenju stabilnosti dohotka u proizvodnji traktora, pri čemu je α = ΔYd/ΔL, β = Yd/L, ΔYd - porast raspoloživog dohotka u proizvodnji traktora, ΔL - porast radne snage u proizvodnji traktora, Yd - raspoloživi dohodak u proizvodnji traktora, L - radna snaga u proizvodnji traktora.