in 1992. To examine the dynamics of the growth and subsequent reduction in government spending, we present a dynamic … GDP - but eventually diverge from output due to the growth of the welfare state. After government expenditures become … large, we identify an endogenous threshold on the economy's growth path where it is optimal for politicians to shrink the …

in 1992. To examine the dynamics of the growth and subsequent reduction in government spending, we present a dynamic … GDP - but eventually diverge from output due to the growth of the welfare state. After government expenditures become … large, we identify an endogenous threshold on the economy's growth path where it is optimal for politicians to shrink the …

context of a general equilibrium model of innovation-led growth. In the model, innovation comes from entrant firms creating …

The one-sector neoclassical growth model (Solow, 1956,RES) can generate only simple dynamics. The dynamic properties of … complex dynamic behaviour. We study some of the properties of a discrete-time version of the two-class model of growth and …

accumulation falls below its balanced growth path, subsidizing innovators by taxing consumers has stabilizing effects, promotes … sustained growth and increases welfare. Further, if the steady state is unstable under laissez faire, the introduction of the … subsidy can make the steady state stable. Such a policy has beneficial effects as it fosters output growth along the …

services and the budget share of services rises. Higher productivity growth in the market sector pushes up the tax rate and …

services and the budget share of services rises. Higher productivity growth in the market sector pushes up the tax rate and …

growth in 23 OECD countries. The empirical evidence provides indication of a structural positive correlation between public …