We analyse a model of overlapping generations in which clean air, a pure public good is used as a private input into production. Although production exhibits constant returns to scale, endogenous growth can occur. In a laissez-faire equilibrium, firms generate rents that are the value of the...

This paper investigates the impact of the desire to keep up with the Joneses (KUJ) on economic growth and optimal tax policy in a continuous time overlapping generations model with AK technology and gradual retirement. Due to the desire to KUJ, the propensity to consume out of total wealth rises...

The conventional wisdom in the literature on capital controls and growth argues that capital controls increase the ability of a government to tax capitalists which proves detrimental for growth. To address this issue, we construct an OLG model to study the effect of capital controls on human...