Saint Paul, Gilles; Verdier, Thierry - In: Journal of Economic Growth 2 (1997) 2, pp. 155-68
This article shows that multiple growth paths may occur in a politico-economic model of endogenous growth. This multiplicity is characterized by the coexistence of the low-tax, low-capital-flight equilibrium and a high-tax, high-capital-flight equilibrium. The likelihood of multiplicity is...