| Summary: | 碩士 === 東吳大學 === 經濟學系 === 105 === This paper develops a dynamic optimizing macro model with the separation of the ownership and control and market imperfections, and use it to examine the impact of an agent whose decisions are different from the shareholders on economic growth. We also discuss the growth effect of the tax policy and Pareto-optimal policy. We find that the output increases cause the demand for factors increase, which will attract increased investment, thus contributing to economic growth when managers' decision-making objective tend to maximize sales revenue. However, the increase in labor income tax and capital income tax will reduce the supply of the factors, resulting in the reduction of labor supply and capital supply, which is decreasing the economic growth rate. On the issue of optimal taxation, by considering the firm earned economic profit, we show that government should increase labor supply and investment by introducing a subsidy to labor and capital income in order to correct the distortion of the imperfect market and separation of the ownership and control.
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