Fiscal policy and endogenous growth with public infrastructure

Pierre-Richard Agénor ()

Oxford Economic Papers, 2008, vol. 60, issue 1, pages 57-87

Abstract: Optimal tax and spending allocation rules are derived in an endogenous growth model where raw labor must be educated to become productive and infrastructure services affect the schooling technology. Growth- and welfare-maximizing solutions are compared under nonseparable utility in consumption and government-provided services. Among other results, it is shown that the optimal share of spending on infrastructure depends not only on production elasticities but also on the quality of schooling and the degree to which infrastructure services affect the production of educated labor. Congestion costs in education raise the optimal share of spending on infrastructure. Copyright 2008 , Oxford University Press.

Date: 2008
View citations in EconPapers

Downloads: (external link)
http://hdl.handle.net/10.1093/oep/gpm018 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Fiscal Policy and Endogenous Growth with Public Infrastructure (2005)
Working Paper: Fiscal Policy and Endogenous Growth with Public Infrastructure (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:oup:oxecpp:v:60:y:2008:i:1:p:57-87

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Oxford Economic Papers is edited by A. Banerjee and James Forder

More articles in Oxford Economic Papers from Oxford University Press
Address: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Series data maintained by Christopher F. Baum ().