Excludable and Non-Excludable Public Inputs: Consequences for Economic Growth

Ingrid Ott () and Stephen J Turnovsky ()

No CESifo Working Paper No. 1423, CESifo Working Paper Series from CESifo Group Munich

Abstract: 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 role of congestion in determining this optimal financing structure and the consequences this has in turn for the government’s budget. The latter consists of fee and tax revenues that are used to finance the entire public production input and that may or may not suffice to finance the entire public input, depending upon the degree of congestion. We extend the model to allow for monopoly pricing of the user fee by the government. Most of the analysis is conducted for general production functions consistent with endogenous growth, although the case of CES technology is also considered.

Keywords: excludable and non-excludable public goods; congestion; growth (search for similar items in EconPapers)
JEL-codes: H21 H40 O40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pbe
Date: 2005
View list of references View citations in EconPapers

Downloads: (external link)
http://www.cesifo-group.de/DocCIDL/cesifo1_wp1423.pdf (application/pdf)

Related works:
Working Paper: Excludable and Non-excludable Public Inputs: Consequences for Economic Growth (2005)
Working Paper: Excludable and Non-excludable Public Inputs: Consequences for Economic Growth (2005)
Journal Article: Excludable and Non-excludable Public Inputs: Consequences for Economic Growth (2006)
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:ces:ceswps:_1423

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Group Munich
Address: Poschingerstrasse 5, 81679 Munich
Series data maintained by Julio Saavedra ().