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The Golden Ratio Applied to Financial Gravity Models: Fees, Taxes and Commerce

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  • Guillermo Peña

    (Department of Economic Analysis and IEDIS, Universidad de Zaragoza, Saragossa, Spain)

Abstract

Recently, some authors have found derivations and applications of the golden ratio in economics science. Based on previous models of Financial Gravity (FG) and generalizing them, this paper proposes the maximization of pure flows after charges as a way for applying the golden ratio in the sales-costs of production ratio in competitive equilibrium, leading to an optimal unitary charge of 0.2361… with many economic applications in monetary economics as well as in finance, public economics and taxation, migration flows, VAT on goods and services and commercial trading. Other applications are also suggested for further research. This paper can be useful for mathematical and applied economists, public financiers, bankers and policy and lawmakers.

Suggested Citation

  • Guillermo Peña, 2024. "The Golden Ratio Applied to Financial Gravity Models: Fees, Taxes and Commerce," Economic Analysis Letters, Anser Press, vol. 3(4), pages 34-40, December.
    • Handle: RePEc:bba:j00004:v:3:y:2024:i:4:p:34-40:d:372
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    References listed on IDEAS

    as
    1. Poddar, Satya & English, Morley, 1997. "Taxation of Financial Services Under a Value-Added Tax: Applying the Cash-Flow Approach," National Tax Journal, National Tax Association;National Tax Journal, vol. 50(1), pages 89-111, March.
    2. Poddar, Satya & English, Morley, 1997. "Taxation of Financial Services Under a Value-Added Tax: Applying the Cash-Flow Approach," National Tax Journal, National Tax Association, vol. 50(1), pages 89-111, March.
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