This paper presents a dynamic general equilibrium model of multi-country, two-good and two-factor, in which both long-run growth and international trade patterns are examined. In each country, government expenditure on a public intermediate good plays a crucial role in the realization of...

We built an overlapping generation model of endogenous growth driven by human capital formation. Young people differ in their innate abilities, but these differences are not known even by the individuals themselves when they are going through the process of education, so that there are no...