Excludable and non-excludable public inputs: Consequences for economic growth
Research output: Journal contributions › Journal articles › Research › peer-review
Standard
In: Economica, Vol. 73, No. 292, 01.11.2006, p. 725-748.
Research output: Journal contributions › Journal articles › Research › peer-review
Harvard
APA
Vancouver
Bibtex
}
RIS
TY - JOUR
T1 - Excludable and non-excludable public inputs
T2 - Consequences for economic growth
AU - Ott, Ingrid
AU - Turnovsky, Stephen J.
PY - 2006/11/1
Y1 - 2006/11/1
N2 - Non-excludable and excludable public inputs are introduced into an endogenous growth model. We derive the equilibrium growth rate and design the optimal tax and user-cost structure, emphasizing the role of congestion and its consequences for the government's budget. The latter comprises fee and tax revenues that are used to finance the public inputs, although they may generate insufficient revenue to do so entirely. 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, but the CES technology is also considered.
AB - Non-excludable and excludable public inputs are introduced into an endogenous growth model. We derive the equilibrium growth rate and design the optimal tax and user-cost structure, emphasizing the role of congestion and its consequences for the government's budget. The latter comprises fee and tax revenues that are used to finance the public inputs, although they may generate insufficient revenue to do so entirely. 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, but the CES technology is also considered.
KW - Economics
UR - https://www.mendeley.com/catalogue/ba58e3e5-6377-3d4f-898c-6161fd34860e/
U2 - 10.1111/j.1468-0335.2006.00506.x
DO - 10.1111/j.1468-0335.2006.00506.x
M3 - Journal articles
VL - 73
SP - 725
EP - 748
JO - Economica
JF - Economica
SN - 0013-0427
IS - 292
ER -