High-Technology Subsidies in General Equilibrium: A Sector-Specific Approach

Karolina Ekholm () and Johan Torstensson
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Johan Torstensson: Lund University

No 467, Working Paper Series from Research Institute of Industrial Economics

Abstract: We use a specific-factor model to examine the conditions under which policy-makers are able to increase aggregate production of high-tech goods by production or R&D-subsidies in the short and long run. The difficulties for the policy-makers in designing a subsidy scheme that succeeds in expanding aggregate high-tech production involve taking into account the trade-off between resources used in R&D and production of high-tech goods, the relative impact of different R&D activities on productivity, and the ease with which resources may be attracted from the non-high-tech sector of the economy to the various high-tech industries.

Keywords: PRODUCTION; RESEARCH AND DEVELOPMENT; PRODUCTIVITY (search for similar items in EconPapers)
JEL-codes: F11 F12 (search for similar items in EconPapers)
Pages: 27 pages
Date: 1996-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: High-Technology Subsidies in General Equilibrium: A Sector-Specific Approach (1997)
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