This paper develops a two-sector (final goods and human capital) general equilibrium endogenous growth model with government spending financed by the three distorting taxes. Endogenous labour-leisure choice is considered. The growth is driven by physical and human capital accumulation as well as public investment.
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Find related papers by JEL classification: D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models H2 - Public Economics - - Taxation, Subsidies, and Revenue