This paper evaluates optimal public investment and fiscal policy for countries characterized by limited tax and debt … should be financed only from current revenue. With investment in the stock of public infrastructure, public sector borrowing … have a higher steady-state growth rate but a lower steady-state public-to-private capital ratio. -- Public investment …

investment, labor and capitalists' income drop at a rate proportional to the standard deviation of the tax rate. Hence, policy … investment policy. The paper interprets the tax concessions granted to multinationals as a commitment device that helps …

Romer's model of a dependent economy, where foreign direct investment is needed to enable the importation of capital goods … the uncertainty embodied in the investment, being determined by the vagueness of the information and by the range of …

investment, labor and capitalists' income drop at a rate proportional to the standard deviation of the tax rate. Hence, policy … investment policy. The paper interprets the tax concessions granted to multinationals as a commitment device that helps …