Abstract

In this paper we present an endogenous growth model with environmental pollution and public capital. As to pollution we assume that it is a by-product of aggregate production and that it negatively affects utility of the household but not production possibilities directly. The paper studies the dynamics of the model and demonstrates that there exists either a unique balanced growth path which is a saddle point or there exist two balanced growth paths with one being locally saddle point stable and one being asymptotically stable.

Erratum

On November 13th, 2007 the author issued an erratum to this article. Please see the cover page within the published PDF for the full text of this correction.

Recommended Citation

Alfred Greiner (2007) "The Dynamic Behaviour of an Endogenous Growth Model with Public Capital and Pollution", Studies in Nonlinear Dynamics & Econometrics: Vol. 11: No. 2, Article 4.
http://www.bepress.com/snde/vol11/iss2/art4