Economides, George; Park, Hyun; Philippopoulos, Apostolis - In: Macroeconomic Dynamics 15 (2011) 03, pp. 336-364
We present a fairly standard general equilibrium model of endogenous growth with productive and nonproductive public goods and services. The former enhance private productivity and the latter private utility. We study Ramsey second-best optimal policy, where the latter is summarized by the paths...