what are the production of public and private sector
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Explanation:
Abstract
We develop a two-sector growth model in which there are conventional profit-maximizing private firms, together with “public firms”, whose objective is to produce a specified quantity of government investment goods – determined by government policy – at minimum cost. We characterize the equilibrium dynamics, and analyze a variety of fiscal disturbances, by simulating a calibrated economy. The effects of different policies, normalized in terms of their impact on the government’s intertemporal deficit, are compared. We find that the effects of tax policies are robust with respect to the relative capital intensities of the two productive sectors. However, the effects of government investment are much more sensitive to this aspect.
Answer:
Public sector: The provision which is financed through the budget and can be used without any direct payment is called public provision. Public provision can be obtained without any direct payment.
Public Production: When goods are produced directly by the government is called public production.Public goods produced by the government can be obtained with payment.
Private sector: The private sector is the part of the economy that is run by individuals and companies for profit and is not state controlled. Therefore, it encompasses all for-profit businesses that are not owned or operated by the government.
Explanation:
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