This paper extends the Barro (1990) endogenous growth model with productive government services to a two-country world with perfect capital mobility, populated by optimising agents with uncertain lifetimes. It shows that increases in government spending on infrastructure for the home country...

In an endogenous growth framework with two public goods with differing productivities, this paper analytically characterizes optimal fiscal policy for a decentralized economy, whereby the optimal values of the growth rate, tax rate and expenditure shares on the two public goods are linked...

This paper develops a model based on the "consumption efficiency" hypothesis of H. Leibenstein (1957) and shows the following: (1) it is profitable for the employer to pay the workers a combination of cash and meals, rather than to pay only in cash, when the workers have dependants; (2) the...

The shadow wage in the urban sector is evaluated in a Harris-Todaro type of model using Sen's welfare measure that incorporates inequality in income in the welfare function. It appears that the shadow wage lies above the market wage when the urban sector is underdeveloped. Copyright 1988 by...