Growth models that incorporate nonrivalry and/or externalities imply that the size of an economy may influence its long-run growth rate. Such implied scale effects run counter to empirical evidence. This paper develops a general growth model to examine conditions under which balanced growth is...

The paper begins by emphasizing the evolving use of increasingly sophisticated analytical methods in the discipline and lamenting the increased specialization of the profession. Several aspects of economics as it has been practiced recently are found to be troubling. These include the dominance...

This paper analyzes the impact of public investment on the dynamics of private capital formation in an intertemporal optimizing market-clearing framework. The key feature characterizing the analysis is that the public good is treated as a durable capital good subject to congestion. The authors...