The Relative Size of the Public Sector and the Tax Burden in a Neoclassical Growth Model

This article is aimed at studying the situation where the tax burden and the relative size of the public sector are stabilized on a constant level and at discussing the resource distribution and production function properties of such a case. The analysis is carried out within the framework of a neoclassical growth model. The golden age equilibrium solution is dealt with in particular, as the golden age framework seems more appropriate to the present problem than to most other problems.