This paper analyses the consequences of tightening environmental policy for economic growth. To find out how the new balanced growth path is reached in the long run, we simulate numerically for the short and medium term the transition path of a change in environmental policy within an endogenous...

In the analysis of endogenous growth models often projections are used which map the balanced growth path into a single point. This is done in order to draw conclusions about the stability of the system or the determinacy of transition paths. This procedure hinges on the homogeneity of the...

The paper analyses aspects of international capital movements and formation of human capital in a three sector two country growth model. We assume that direct foreign investment from a country with a high level of knowledge goes along with a positive external effect on human capital growth in...

This paper analyses tax policy measures within a two sector endogenously growing economy with elastic labour supply. Pollution is modelled as a side product of physical capital stock used as a primary production factor in the final good sector. The framework allows to analyse consequences of...