Endogenous Market Structure and Fiscal Policy in an Endogenous Growth Model with Public Capital

Toshiki Tamai

Economics Bulletin, 2006, vol. 15, issue 11, 1-10

Abstract: This paper develops an endogenous growth model with public capital and imperfect competition. In the model, we take into account monopolistic competition of intermidiate sector and endogenous determination of the number of firms in the sector by considering the fixed cost to keep production going. We show that the number of firms in intermidiate sector is affected by fiscal policy. Furthermore, it is demonstrated in the paper that market structure plays a key role in reducing the growth-maximizing tax rate.

Keywords: Economic; growth (search for similar items in EconPapers)
JEL-codes: H5 O1 (search for similar items in EconPapers)
Date: 2006-09-27
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-06o10007

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