Competitive equilibrium and public inves
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Gerhard Glomm; B. Ravikumar
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Article
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1999
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Elsevier Science
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English
โ 159 KB
We examine a one-sector growth model in which public capital is an external input to private production functions. Revenues from taxing capital and labor income are used to fund public investments. The competitive equilibrium can be obtained by solving an arti"cial planning problem. We prove that th