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AA00260492-20130000-0093.pdf
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| Title |
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Endogenous growth with environmental pollution and depreciation of public capital : a theoretical note
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Gupta, Manash Ranjan
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Economic research Unit, Indian Statistical Institute, Kolkata India
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Ray Barman, Trishita
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Economic research Unit, Indian Statistical Institute, Kolkata India
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Keio Economic Society, Keio University
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2013
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Keio economic studies
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49
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2013
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93
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103
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| Abstract |
In this note, we develop a model of endogenous growth in which public infrastructure maintenance expenditure and abatement expenditure play special role to explain economic growth. We consider industrial production as the source of environmental pollution; and treat public capital depreciation as endogenous, being dependent upon environmental quality and maintenance expenditure. We find out the properties of the steady-state equilibrium growth path; and then analyze the properties of growth rate maximizing fiscal policy along this path.
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