Growth Effects of Fiscal Policy in an Endogenous Growth Model with Productive Public Spending and Pollution
نویسندگان
چکیده
In this paper we present an endogenous growth model with productive government spending and pollution. As to pollution we suppose that it is a by-product of aggregate production and that it negatively affects utility of the household but not production possibilities directly. Analyzing our model it is first shown that for reasonable parameter values there exists a unique balanced growth path which is both locally and globally determinate. Second, growth effects of fiscal policy along the balanced growth path are analyzed and conditions for positive effects of policy measures are derived. JEL: O41, Q38
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