This paper analyzes in the context of a dynamic model, how firms decide on capital investment if the accompanying adjustment costs are a function of the governmental activity. The government provides the public input and decides on the degree of rivalry. The productive public input enhances...

In diesem Papier wird untersucht, welche Auswirkungen die Verfügbarkeit von Infrastruktur auf die unternehmerische Investitionsentscheidung hat. Dabei ist unterstellt, dass Infrastruktur zum einen Input in der Produktionsfunktion ist und zum anderen die Höhe der Anpassungskosten beeinflusst....

In this paper the impacts of income and consumption taxes are analyzed within a model of stochastic endogenous growth with congestion. It is shown that the optimal amount of governmental input diminishes with uncertainty and that the optimal financing depends on the relation between the degrees...

This paper analyzes within a two-region endogenous growth model how different types of public policies affect the equilibrium spatial distribution of economic activity. Integration is modeled as a continuum and enables firms to access the public input of the respective other region. Given a...

This paper analyzes the dynamic impact of tax cuts within a stochastic model of endogenous growth with a congested public input. A decreasing taxation of deterministic income parts leads to the well-known positive growth effect. Nevertheless, due to the insurance effect associated with the...

We analyze within a dynamic model the growth impact of private capital investment if the accompanying adjustment costs are a function of governmental activity. The impact of the productive public input is twofold: it (i) enhances private capital productivity and (ii) reduces adjustment costs. We...

This paper analyzes the growth impact of fiscal and institutional policies for alternative sizes of regions. The local government provides a public input that may be subject to relative congestion thus reducing its individual availability. Then private capital productivity is affected by the...