Abstract for: ASD Macroeconomic Model of Microfoundation, Public Money, and Uniform Tax (Part V)

Traditional production functions consider labor and capital as the primary input factors while excluding intermediate goods such as raw materials and energy. This omission leads to an inadequate explanation of real-world phenomena, posing a significant limitation in empirical analysis. A holistic explanation of macroeconomic dynamics and analyzing potential impacts of policy interventions requires examining internal structure of industrial inputs-outputs, which has been abstracted as one aggregate production sector in the ASD (Accounting System Dynamics) macroeconomic models. Instead of one aggregate production sector, this study develops a model with three production sectors producing materials, capitals, and consumer goods and services by expanding the Leontief production function and incorporate three inputs (labor, capital, and material). Transactions between sectors and financial flows are structured using the ASD framework (which is stock-flow consistent). Validation tests, including balance sheet consistency and flow of funds checks, ensure model reliability. Simulations reveal that production constraints emerge from sectoral input dependencies. Inflation in the material sector propagates through the economy, affecting GDP. The model confirms that a uniform tax rate–a single, fully-flat rateapplied to all transactions–can sustain government revenue. These findings highlight the importance of sectoral interactions and tax policy in shaping macroeconomic outcomes. The resulting model provides a first integration of macroeconomic input-output analysis, flow of funds, and system of national accounts. This research extends ASD modeling by explicitly differentiating production sectors. This study also contributes by developing a macroeconomic model to analyze the implementation and implications of the uniform tax system proposed under the public money system. Future research will refine model structure to further enhance its applicability in policy analysis. The model provides a foundation for studying economic stability under alternative monetary and fiscal frameworks. Used code analysis and reasoning fuctionality of AI in refining model structure and validate consistency test