Author(s)

Nicholas Simon Gonchar

Bogolyubov Institute for Theoretical Physics of the National Academy of Sciences of Ukraine, Kyiv, Ukraine.

A complete description of taxation systems that ensure sustainable economic development is given. These tax systems depend on production technologies and output volumes. Explicit formulas for such dependencies are found. In a sustainable economy, the value added either exceeds or is strictly less than the value of the product produced. The latter is determined by the tax system. The concept of perfect taxation systems is introduced and their explicit form is found. For perfect taxation systems, it is proved that the vector of output should belong to the interior of the cone formed by the vectors of the columns of the total cost matrix. It is shown that under perfect taxation systems the vector of gross output must satisfy a certain system of linear homogeneous equations. It is shown that under certain conditions, there are tax systems under which certain industries require subsidies for their existence. Under such taxation systems, the industries that require subsidies are identified. The family of all non negative solutions of the system of linear equations and inequalities is constructed, which allowed us to formulate a criterion for describing all equilibrium states in which partial clearing of markets occurs.

Technological Mapping, Economic Balance, Clearing Markets, Vector of Taxation, Sustainable Economic Development, Aggregated Economy Description

Gonchar, N. (2025) Tax Systems for Sustainable Economic Development. Journal of Mathematical Finance, 15, 1-34. doi: 10.4236/jmf.2025.151001.