Guimarães, Luis; Afonso, Óscar; Vasconcelos, Paulo B. - Faculdade de Economia, Universidade do Porto - 2011
This paper incorporates healthcare and creative activities in the Ramsey-Cass-Koopmans model in order to analyse the endogenous growth effects arising from governmental policies. An increase in lump-sum taxes and inefficient expenditures decrease the short, medium and the long-run economic growth.