Optimality of the competitive equilibrium in the Uzawa-Lucas model with sector-specific externalities

In this paper, we show that the competitive equilibrium is optimal in the Uzawa-Lucas model with sector-specific externalities associated to human capital in the goods sector. Thus, these external effects do not provoke a market failure and do not provide a rationale for government intervention. Copyright Springer-Verlag Berlin/Heidelberg 2004

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Year of publication:	2004
Authors:	Gómez, Manuel
Published in:	Economic Theory. - Springer. - Vol. 23.2004, 4, p. 941-948
Publisher:	Springer
Subject:	Endogenous growth \| Externalities \| Efficiency

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005753233