We derive the social optimum and optimal government debt in an intergenerational model of growth with fertility, elastic labor, human capital externalities and a non-convex feasible set. Debt through lump-sum taxation increases leisure and labor, reduces fertility, and can achieve the social...

This paper aims to examine the impact of knowledge intensive business services (KIBS) on innovation in China. First, we review the development of KIBS in China by analysing the agglomeration, utilization and quality of KIBS. Second, regression techniques are employed to investigate the impact of...