Control of a one-sector economy on finite time interval with account of tax deductions

The problem of optimal control of a one-sector economy on a finite time interval in the presence of tax deductions is studied on the class of linear homogeneous production functions using the criterion of maximization of consumption of employers in the case of exponential growth of labor resources. The solution is obtained in the form of the “Turnpike Theorem”. The “Golden Rule of Saving” is studied. The results are specified for the case of the Cobb-Douglas production function.