We develop an endogenous growth model which is focussed on entrepreneurial skills and their impact on growth and convergence. Our work is closely related to the model by Acemoglu et al. (2006) but extends their analysis in some important respects. Entrepreneurs in our model dispose of two...

This paper investigates within an endogenous growth model how a congested productive governmental input should be financed if exclusion is possible. The instruments are taxes and fees. To create the macroeconomic equilibrium the planner has to ensure production efficiency with the optimal...