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https://doi.org/10.1016/j.jedc.2006.01.006
Title: | Subsidies in an R&D growth model with elastic labor | Authors: | Zeng, J. Zhang, J. |
Keywords: | Growth Innovation Monopoly pricing Subsidies |
Issue Date: | 2007 | Citation: | Zeng, J., Zhang, J. (2007). Subsidies in an R&D growth model with elastic labor. Journal of Economic Dynamics and Control 31 (3) : 861-886. ScholarBank@NUS Repository. https://doi.org/10.1016/j.jedc.2006.01.006 | Abstract: | This paper compares different subsidies in an R&D growth model with competitive suppliers of a final good and monopolistic suppliers of intermediate goods. Unlike existing studies with lump-sum taxes and fixed labor, we assume distortionary taxes and elastic labor, finding some new insights. First, subsidizing R&D investment is more effective than subsidizing final output or subsidizing the purchase of intermediate goods in terms of promoting growth. Second, in terms of raising welfare, the R&D subsidy may also be more effective than the other subsidies and all of them are dominated by their mix, but none can achieve the social optimum.©2006 Elsevier B.V. All rights reserved. | Source Title: | Journal of Economic Dynamics and Control | URI: | http://scholarbank.nus.edu.sg/handle/10635/20033 | ISSN: | 01651889 | DOI: | 10.1016/j.jedc.2006.01.006 |
Appears in Collections: | Staff Publications |
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