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...

Many public goods are characterized by rivalry and/or excludability. This paper introduces both non-excludable and excludable public inputs into a simple endogenous growth model. We derive the equilibrium growth rate and design the optimal tax and user-cost structure. Our results emphasize the...

This paper employs a dynamic framework to compare the effects of alternative government activities on convergence of industrialized economies to the technology frontier. The government's Instruments include facilitating private investment and education policy. The latter enhances skills of...