This paper attempts to develop a model of endogenous growth with special focus on the role of health capital, public infrastructure and environmental pollution. It is an extension of the model of Agenor (2008) who does not consider environmental pollution. We analyze properties of optimal fiscal...

This paper develops a model of endogenous economic growth with special consideration to the role of productive public expenditure and environmental pollution; and analyses the properties of optimal fiscal policy in the steady state growth equilibrium. We consider the level of consumption as the...