Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70107
Authors: 
Fisher, Walter H.
Turnovsky, Stephen J.
Year of Publication: 
1997
Series/Report no.: 
Reihe Ökonomie / Economics Series, Institut für Höhere Studien (IHS) 47
Abstract: 
This paper analyzes the impact of public investment on the dynamics of private capital formation in an intertemporal optimizing market-clearing framework. The key feature characterizing the analysis is that the public good is treated as a durable capital good, subject to congestion. We show how in the presence of congestion the effect of government investment on private capital formation involves a tradeoff between the degree of substitution between private and public capital in production and the degree of congestion. Both lump-sum and distortionary tax financing are considered, with this tradeoff being tightened in the latter case.
Subjects: 
congestion
public capital
JEL: 
E62
H41
Document Type: 
Working Paper

Files in This Item:
File
Size
297.51 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.