Growth Effects of Subsidies in a Search Theoretic R&D Model: A Quantitative Evaluation

B Bental and Dan Peled ()
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B Bental: Israel Institute of Technology, https://web.iem.technion.ac.il/en/programs/graduate-phd-msc/economics/about.html
Authors registered in the RePEc Author Service: Uzi Segal

No 9607, University of Western Ontario, Departmental Research Report Series from University of Western Ontario, Department of Economics

Abstract: Based on a model of perpetual growth through optimal search for better technologies, calibrated on time series data form the Israeli economy, it is shown that capital subsidies produce a definite gain in expected growth rates, but those gain are invariant to the particular restrictions associated with the subsidies.

Keywords: RESEARCH AND DEVELOPMENT; SUBSIDIES; ECONOMIC GROWTH (search for similar items in EconPapers)
JEL-codes: H22 O32 (search for similar items in EconPapers)
Date: 1996
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