Pengaruh Surplus Primer, Tingkat Pajak, dan Investasi Publik terhadap Modal dan Utang Publik dalam Model Pertumbuhan Ekonomi

Abstract

Economic growth of a country is stable if the state economic growth is sustainable. It means that public capital and public debt of economic are in balance. In this work, the influence of three factors into two components, there are public capital and public debt. The factors are the influence of the primary surplus, the tax rate, and the public investment. The economic growth model studied was assumed in such a way that the primary surplus of GDP ratio is a positive linear function of the public debt. A simulation conducted in this study is divided into three cases i.e,: the effect of the primary surplus to public capital and public debt, the effect of the tax rate on public capital and public debt, and the effect of public investment on public capital and public debt. The simulation results showed that stable economic growth rate occurred when all of these three factors increased. The increase causes the public debt get decreased even reached the situation with no public debt and public capital increased. As a consequence, the public capital can be used for public investment.