Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/95031
Authors: 
Segerstrom, Paul S.
Year of Publication: 
1998
Series/Report no.: 
IUI Working Paper 506
Abstract: 
This paper presents a model of R&D-driven growth without scale effects where firms can engage in both horizontal and vertical R&D activities. Unlike in earlier models of R&D-driven growth without scale effects by Jones (1995), Segerstrom (1998) and Young (1998), R&D subsidies can have long-run growth effects. Indeed, for a wide range of parameter values, a permanent increase in the R&D subsidy rate decreases the long-run rate of economic growth. An intuitive explanation for why R&D subsidies sometimes retard growth and sometimes promote growth is provided.
Subjects: 
Economic growth
R&D
JEL: 
O32
O41
Document Type: 
Working Paper

Files in This Item:
File
Size
437.46 kB
8.48 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.