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Publication Detail
Solow-Swan growth model and the fortunes of the commons
  • Publication Type:
    Working discussion paper
  • Authors:
    Aniket K
  • Publication date:
    16/07/2018
  • Report number:
    Paper No. 87921
  • Series:
    Munich Personal RePEc Archive
  • Status:
    Unpublished
  • Keyword:
    Economic Growth, Public Goods, Infrastructure, Congestion
Abstract
The traditional Solow-Swan growth framework has only one kind privately owned capital. Output saved in a period is transformed into privately owned capital through the saving channel. We add a fiscal channel that taxes output and transforms it into public goods subject to congestion. We show that under the standard conditions the steady state of the economy is determined by the interaction of these two channels and prosperity for a country is only attained if both channels work properly.
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