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This paper analyzes the impact of public investment on the dynamics of private capital formation in an intertemporal … capital good, subject to congestion. We show how in the presence of congestion the effect of government investment on private …
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This paper complements research on how love of wealth bears on key variables in a Ramsey-Cass-Koopmans growth framework. It is shown that for an optimum the social planner cannot have an excessive love of wealth. If the planner has the "right" love of wealth an optimum exists and implies higher...
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-run fluctuations. The model remains analytically tractable due to a very convenient property of the household's investment decision in …
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