ABSTRACT
This chapter describes proposed generalizations of the Mankiw-Romer-Weil model and a compilation of the Solow model with a Keynesian growth model proposed by Domar that consider the effect of both fiscal and monetary policy on economic growth. It describes models of economic growth that represent generalizations of the two-capital Mankiw-Romer-Weil growth model. Those models are based on the assumption that investments in physical and human capital are financed both from disposable income of the private sector and from taxes collected by the government sector of the economy. The chapter describes a model with a separated capital of the government sector. It also contains a description of a Domar-Solow model. The chapter then considers the effect of investment inputs in the economy on both the demand and the supply side of the economy, like in the original Domar model.
