We propose in this paper an analytical endogenous growth model with public capital and distortionary taxation. We derive what should be the social discount rate that maximizes welfare or growth, with or without constraint on the maximal amount of fiscal revenues that can be raised by lump sum...

This paper briefly presents new empirical tests of the convergence hypothesis based on panel data. We apply a modified Evans and Karras [1996] testing procedure to three samples (Europe, OECD and World). We propose a nested tests procedure to characterize various convergence processes: absolute...