In this paper, we present a simple overlapping-generations model with human capital, pollution, and political corruption to consider problems related to sustainable growth. In many growth models that incorporate the environment, it is assumed that there exists an altruistic government that...

This paper provides evidence that capital market imperfections hold back innovation and growth, and that public policy can complement capital markets. We deliver the evidence by studying the effects of government funding on the behavior of SMEs in Finland. By adapting the methodology recently...