State, Public Sector and Theoretical Prerequisites to a Model of an 'Economy Without Taxes'

International Journal of Social Economics, Vol. 27, No. 1-2, 2000

17 Pages Posted: 2 Dec 2012

See all articles by Vladimer Papava

Vladimer Papava

Ivane Javakhishvili Tbilisi State University

Date Written: November 29, 2012

Abstract

The paper offers a new view of the role of state based on recognition of the economic ability of the state as a separate factor of production. This approach gives indirect taxes the status of factor income as state profit. If we were to apply the mechanism of producing and purchasing private goods to public goods, direct taxes would be replaced by the state loans that are non-repayable, but yield interest, or by irretrievable loans with computed interest. This case is illustrated by the budgetary equations in the model of an “economy without taxes.”

Keywords: Production economics, State, Markets, Public sector, Taxation

JEL Classification: D33, E62, H41, H42

Suggested Citation

Papava, Vladimer, State, Public Sector and Theoretical Prerequisites to a Model of an 'Economy Without Taxes' (November 29, 2012). International Journal of Social Economics, Vol. 27, No. 1-2, 2000 . Available at SSRN: https://ssrn.com/abstract=2182590

Vladimer Papava (Contact Author)

Ivane Javakhishvili Tbilisi State University ( email )

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Tbilisi, Tbilisi 0179
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+995 32 222-5107 (Fax)

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