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...

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...

In this article we analyze the interdependent issues of urbanization, growth, and globalization by presenting key empirical facts and relevant underlying economic theories on each. We look more closely, but without providing a detailed formal analysis, at a model by Baldwin and Forslid (2000)...

The objective of this paper is to analyze the welfare impact of corrupt bureaucratic behavior within the framework of a growth model. This allows to disentangle the interaction between static and dynamic bureaucratic efficiency. The economy is described by the following conditions: (i) The...

In this article we analyze the interdependent issues of urbanization, growth, and globalization by presenting key empirical facts and relevant underlying economic theories on each. We look more closely, but without providing a detailed formal analysis, at a model by Baldwin and Forslid (2000)...

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...

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...

In this article we analyze the interdependent issues of urbanization, growth, and globalization by presenting key empirical facts and relevant underlying economic theories on each. We look more closely, but without providing a detailed formal analysis, at a model by Baldwin and Forslid (2000)...