&D), which are endogenized through financial institutions. The theory and its results shed lights on the debate of convergence …

increasing returns to scale; (2) the impact of increases in private investment on growth is large, significant, and robust; (3 …) increases in government investment have a positive impact on growth; (4) human capital development plays an important role in … output expansion; (5) positive externalities are generated by physical and human capital accumulation; and (6) growth is …

This paper formally identifies an important role of banks: Banks competitively internalize production externalities and … facilitate economic growth. I formulate a canonical growth model with externalities as a game among consumers, firms, and banks …. Banks compete for deposits to seek monopoly profits, including externalities. Using loan contracts that specify price and …

Harberger’s superneutrality conjecture contends that, although in theory the mix of direct and indirect taxes affects … investment and growth, in practice growth effects of taxation are negligible. This paper provides evidence in support of this … highlights implications of different taxes for growth and investment in these models. The empirical work is based on cross …