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Memorandum, Department of Economics, University of Oslo >
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http://hdl.handle.net/10419/63003
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| Title: | | Industrial policy and firm heterogeneity  |
| Authors: | | Barros, Pedro P. Nilssen, Tore |
| Issue Date: | | 1999 |
| Series/Report no.: | | Memorandum, Department of Economics, University of Oslo 1999,02 |
| Abstract: | | Our concern is with a firm-specific industrial policy. When R&D subsidies or taxes are differentiated among firms, the question arises which firms in an industry should receive such support. We analyze a situation where firms differ in their R&D technologies in two distinct ways: They differ both in the costs of performing R&D activities and in the output obtained from such activities. We find that the optimal firm-specific industrial policy is affected differently by the two sources of firm heterogeneity. Furthermore, a change in a firm's R&D productivity has an ambiguous effect on the optimal policy towards the firm. |
| Subjects: | | firm heterogeneity industrial policy R&D |
| JEL: | | F13 L52 O31 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Memorandum, Department of Economics, University of Oslo
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