This paper presents an endogenous growth model which features elastic labour supply in order to address the distortions created by labour income and consumption taxation. Introducing elastic labour into an AK model greatly changes the structure of the model and raises problems regarding the...

We analyze a multi-sector growth model with directed technical change where man-made capital and exhaustible resources are essen tial for production. The relative profitability of factor-specific innovations endogenously determines whether technical progress will be capital- or...

We analyze a multi-sector growth model with directed technical change where man-made capital and exhaustible resources are essen- tial for production. The relative profitability of factor-specific inno- vations endogenously determines whether technical progress will be capital- or...

Well-intended policies aimed at reducing greenhouse gas emissions may have unintended undesirable consequences. Recently, a large amount of literature has emerged showing under what conditions this so-called ‘Green Paradox' may occur. We review this literature and identify the key mechanisms...