R&D versus output subsidies in mixed markets

Dusanee Kesavayuth and Vasileios Zikos

Economics Letters, 2013, vol. 118, issue 2, 293-296

Abstract: We analyse the relative welfare effects of an R&D and an output subsidy in a mixed duopoly. We show that an R&D subsidy is beneficial for society as a whole, and socially superior to an output subsidy, when spillovers are sufficiently high. Otherwise, an output subsidy is socially superior.

Keywords: R&D subsidies; Output subsidies; Mixed duopoly; Spillovers (search for similar items in EconPapers)
JEL-codes: L13 L31 L32 L50 O38 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:118:y:2013:i:2:p:293-296

DOI: 10.1016/j.econlet.2012.11.017

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