Open Access Journal Article

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

by Guillermo Peña a,*
a
Department of Economic Analysis and IEDIS, Universidad de Zaragoza, Saragossa, Spain
*
Author to whom correspondence should be addressed.
EAL  2024 3(4):69; https://doi.org/10.58567/eal03040004
Received: 8 May 2024 / Accepted: 23 December 2024 / Published Online: 25 December 2024
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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.

Keywords: Financial Services; Monetary Policy; Taxation; VAT; Trading Commerce; Gravity Models;
Copyright: © 2024 by Peña. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

Funding

Fundación Ibercaja/Universidad de Zaragoza (JIUZ2022-CSJ-19) , Gobierno de Aragón (‘S23_20R: Public Economics Research Group’) , Gobierno de Aragón (‘S39_23R: ADETRE) , Spanish Ministry of Science and Innovation (PID2020-112773GB-I00)

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ACS Style
Peña, G. The Golden Ratio Applied to Financial Gravity Models: Fees, Taxes and Commerce. Economic Analysis Letters, 2024, 3, 69. https://doi.org/10.58567/eal03040004
AMA Style
Peña G. The Golden Ratio Applied to Financial Gravity Models: Fees, Taxes and Commerce. Economic Analysis Letters; 2024, 3(4):69. https://doi.org/10.58567/eal03040004
Chicago/Turabian Style
Peña, Guillermo 2024. "The Golden Ratio Applied to Financial Gravity Models: Fees, Taxes and Commerce" Economic Analysis Letters 3, no.4:69. https://doi.org/10.58567/eal03040004
APA style
Peña, G. (2024). The Golden Ratio Applied to Financial Gravity Models: Fees, Taxes and Commerce. Economic Analysis Letters, 3(4), 69. https://doi.org/10.58567/eal03040004

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