Most macroeconomic models assume that aggregate output is generated by a specification for the production function with total physical capital as a key input. Implicitly this assumes that private and public capital stocks are perfect substitutes. In this paper we test this assumption by...

This paper investigates the relationship between economic growth in Poland and selected elements of fiscal policy and private spending on education. We use the Mankiw-Romer-Weil model, augmented with learning-by-doing and spillover-effects and with concepts from the literature on optimal fiscal...

Recent studies have found that resource-rich low-income countries are better off investing their resource revenues domestically rather than saving them abroad in a sovereign wealth fund (SWF). This paper finds an optimal rule-based policy of accumulating public capital and its associated public...