Duarte Bom, P.R.; Heijdra, B.J.; Ligthart, J.E. - Tilburg University, Center for Economic Research - 2010
overlapping generations model that includes a production externality of public capital and a wealth effect on labor supply. Public … capital enters the firm's production function under various technological scenarios. We show that if factors of production are … gross complements and public capital is Solow neutral, which is the empirically plausible case, the long-run output …