The model of d5 higher derivative (HD) gravity admitting Schwarzschild-anti
de Sitter black hole (S-ADS BH) as exact solution is considered. The surfa
ce counterterms are added to the complete action, they are fixed by the con
dition of finiteness of bulk AdS spacetime when brane goes to infinity. As
a result the brane (observable Universe) is defined dynamically in terms of
d5 theory parameters (brane tension is fixed). Brane radius is always bigg
er than horizon radius and the 4d Universe itself could be static or inflat
ionary Natural generalization of this model gives warped compactification (
with dynamically generated brane) in the next-to-leading order of AdS/CFT c
orrespondence. (C) 2000 Elsevier Science B.V. All rights reserved.