This paper presents an endogenous growth model, in which entry, exit, and growth are endogenously determined through the rational behavior of agents, to investigate the effects of growth-enhancing policies on the exit rate of firms, and on the unemployment rate as well. Unlike standard...

This paper introduces consumption externalities into an endogenous growth model of general capital accumulation and characterizes balanced growth equilibria. Contrary to the common argument in previous studies, we show that the growth rate in a feedback Nash equilibrium can be higher than that...