Optimal growth policy: The role of skill heterogeneity

Volker Grossmann and Thomas Steger

Economics Letters, 2013, vol. 119, issue 2, 162-164

Abstract: A simple semi-endogenous growth model is employed to show that optimal subsidization of both R&D and capital costs is independent of the distribution of R&D skills in the workforce. This holds despite the empirically supported fact that a higher R&D subsidy rate raises wages of R&D workers.

Keywords: Optimal growth policy; R&D skills; R&D subsidy; Semi-endogenous growth, heterogeneity (search for similar items in EconPapers)
JEL-codes: H20 O30 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 (5)

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Working Paper: Optimal growth policy: The role of skill heterogeneity (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:119:y:2013:i:2:p:162-164

DOI: 10.1016/j.econlet.2013.01.032

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