Excludable and Non-Excludable Public Inputs: Consequences for Economic Growth

By Ingrid Ott, S. Turnovsky. Social Science Research Network, 2006

116 citations recorded by the source corpus.

Non-excludable and excludable public inputs are introduced into an endogenous growth model. We derive the equilibrium growth rate and design the optimal tax and user-cost structure, emphasizing the role of congestion and its consequences for the government's budget. The latter comprises fee and tax revenues that are used to finance the public inputs, although they may generate insufficient revenue to do so entirely. We extend the model to allow for monopoly pricing of the user fee by the government. Most of the analysis is conducted for general production functions consistent with endogenous growth, but the CES technology is also considered.

Subfields: Economics and Econometrics, Gender Studies

View Paper: https://www.semanticscholar.org/paper/bc28c85324773ba8e09f029b5379791aa07e312e

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In Economics and Econometrics

Citations in the corpus

Productive Government Expenditure and Economic Growth (2009, unknown): “This generalization may prevent closedform solutions (see, e. g., Ott and Turnovsky (2006) for a discussion).”
Infrastructure, growth, and inequality : an overview (2014, background): “4 Ott and Turnovsky (2006) examine the implications of congestion and excludability for the optimal financing of infrastructure services in a macroeconomic setting.”