Optimal R&D subsidies in a model with physical capital, human capital and varieties

Manuel Gómez and Tiago Sequeira

Economic Modelling, 2013, vol. 30, issue C, 217-224

Abstract: In this paper, we analyze the social planner solution of an endogenous growth model with physical capital, human capital and R&D. The model incorporates three sources of inefficiency: monopolistic competition in the intermediate-goods sector, duplication externalities and spillovers in R&D. A complete stability analysis for the optimal growth problem of this model is provided. We characterize the optimal policy that can decentralize the optimal solution and find that the path of the optimal R&D subsidy can be non-monotonic.

Keywords: Endogenous growth; R&D; Optimal policy (search for similar items in EconPapers)
JEL-codes: H20 O40 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:30:y:2013:i:c:p:217-224

DOI: 10.1016/j.econmod.2012.07.019

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