Munich Personal RePEc Archive

Do R&D subsidies necessarily stimulate economic growth?

Chen, Ping-ho and Chu, Hsun and Lai, Ching-Chong (2015): Do R&D subsidies necessarily stimulate economic growth?

[img]
Preview
PDF
MPRA_paper_66061.pdf

Download (211kB) | Preview

Abstract

This paper analyzes the growth effect of subsidy policies in a modified R&D-based growth model of Romer (1990), in which both innovation and capital accumulation are engines of long-run economic growth. We show that, under certain conditions, subsidizing the R&D sector may be growth-impeding.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.