@techreport{Grossmann2010Dynamically,
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 = {Hannover},
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; Wohlfahrtsanalyse; Theorie; USA},
language = {eng},
number = {453},
publisher = {Wirtschaftswiss. Fak., Leibniz Univ.},
title = {Dynamically optimal R&D subsidization},
type = {Discussion Paper, Wirtschaftswissenschaftliche Fakult\"{a}t, Leibniz Universit\"{a}t Hannover},
url = {http://hdl.handle.net/10419/66022},
year = {2010}
}
