Scale, Congestion and Growth

Datos Bibliográficos

ID9723311
AutoresTheo S Eicher (0000-0003-3829-5062, University of Washington), Theo Eicher, Stephen J Turnovsky (0000-0002-0864-2118, University of Washington)
Año2000
Volumen67
Número267
Páginas325-346
Fecha de publicación2000-08-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEconomica (JOURNAL)
Identificadores de la revistaISSN: 0013-0427 • E-ISSN: 1468-0335
EditorialWiley (PUBLISHER • GB)
DOI10.1111/1468-0335.00212
OpenAlexW3123896469
IdiomaEN
Citas recibidas6

This paper explores the relationship between aggregate and relativecongestion, returns to scale and economic growth. Aggregate congestionreduces the effective productivity of capital; relative congestion reducesthe effective productivity of labour. Both forms of congestion adverselyaffect the equilibrium growth rate, although their relative effects dependupon aggregate returns to scale. The two forms of congestion havecontrasting effects on the transitional dynamics. Relative congestionretards the rate of adjustment; aggregate congestion accelerates it. Theexternalities generated by congestion and non‐optimal expenditure can befully corrected, both during the transition and in steady state, by atime‐invariant income tax

Econometrics · Economics · Externality · Macroeconomics · Mathematical economics · Microeconomics · Productivity · Economic Growth and Productivity · Fiscal Policy and Economic Growth