@techreport{Grossmann2011Dynamically,
abstract = {Previous research on optimal R&D subsidies has focussed on the long run. This paper characterizes the optimal time path of R&D subsidization in a semi-endogenous growth model, by exploiting a recently developed numerical method. Starting from the steady state under current R&D subsidization in the US, the R&D subsidy should significantly jump upwards and then slightly decrease over time. There is a negligible loss in welfare, however, from immediately setting the R&D subsidy to its optimal long run level, compared to the case where the dynamically optimal policy is implemented.},
address = {Leipzig},
author = {Volker Grossmann and Thomas M. Steger and Timo Trimborn},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H20; O30; O40; 330; R&D subsidy; transitional dynamics; semi-endogenous growth; welfare; Forschungssubvention; Dynamische Optimierung; Neue Wachstumstheorie; Intertemporale Allokation; Wohlfahrtseffekt; Theorie; USA},
language = {eng},
number = {97},
publisher = {Univ., Wirtschaftswissenschaftliche Fakult\"{a}t},
title = {Dynamically optimal R&D subsidization},
type = {Working Paper // Universit\"{a}t Leipzig},
url = {http://hdl.handle.net/10419/48851},
year = {2011}
}
