In this paper we combine the assumption that the consumption function is concave with an AK production function. We show that the set of equilibrium steady-state growth rates is an interval. Then we note that when they exist, unegalitarian equilibria are characterized by higher rates of growth...

Over the years, optimal taxation has been extensively discussed, and a major focus has been on the question of whether the optimal capital income tax rate is zero in long-run equilibrium. This paper addresses this issue in the context of a model of vintage capital with technical change and the...

Empirical evidence suggests (i) that the real exchange rates of developing economies show less persistence than do those of more advanced economies and (ii) that the elasticity of substitution between capital and labor tends to increase from below unity for less developed economies to above one...

This paper presents a multiregion modeling approach focussing on capital mobility and spillovers. The approach is based on a Ramsey type economic growth model, on the one hand, and on the balance of payment concept, on the other hand. The way to find an equilibrium solution is novel. It differs...

In the last half of the 1990s, labor productivity growth rose in the U.S. and fell almost everywhere in Europe. We document changes in both capital deepening and multifactor productivity (MFP) growth in both the information and communication technology (ICT) and non-ICT sectors. We view MFP...

This paper focuses on the role of government capital as a critical productive input when the level of services that the agent derives from it is subject to congestion. I develop a two-sector “non-scale†production model in which there are two types of firms, conventional...

This paper presents a growth model where the technological externality (learning-by-doing) generated by ICT is the key mechanism for development. If hi-tech assets are able to engender increasing returns, as being knowledge (or R&D) based or because creating network externalities, then the...