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• W2070241946 abstract "Abstract The purpose of this paper is to consider a partial equilibrium model for a sustainable infrastructure investment in a labor-production economy. We consider an inter-temporal Stackelberg game in a “capital primitive” economy where all capital investments are made by a Central Agency (a government). The government is assumed to have a number of objectives including sustainability of the infrastructure investments, while firms are assumed to be myopic, maximizing only current profits and paying taxes as a function of their returns. Both open-loop and closed-loop (feedback) Stackelberg strategies are considered. Based on the analysis of the investment game, some conclusions are drawn regarding the propensity to invest as a function of sustainability constraints, the taxation rates and employment levels. We then show that investments can tend to a constant level and thus strategic government goals of sustainability and employment growth can be planned only if labor costs and the general price index are steady or characterized by a set of conditions ensuring the attainability of the steady-state investment." @default.
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• W2070241946 date "2008-06-01" @default.
• W2070241946 modified "2023-09-25" @default.
• W2070241946 title "Sustainable infrastructure investment with labor-only production" @default.
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• W2070241946 doi "https://doi.org/10.1016/j.ijpe.2007.12.004" @default.
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