R&D versus output subsidies in mixed markets

We analyse the relative welfare effects of an R&D and an output subsidy in a mixed duopoly. We show that an R&D subsidy is beneficial for society as a whole, and socially superior to an output subsidy, when spillovers are sufficiently high. Otherwise, an output subsidy is socially superior.

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Year of publication:	2013
Authors:	Kesavayuth, Dusanee ; Zikos, Vasileios
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 118.2013, 2, p. 293-296
Publisher:	Elsevier
Subject:	R&D subsidies \| Output subsidies \| Mixed duopoly \| Spillovers

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Type of publication:	Article
Classification:	L31 - Nonprofit Institutions ; L32 - Public Enterprises ; O38 - Government Policy ; L13 - Oligopoly and Other Imperfect Markets ; L50 - Regulation and Industrial Policy. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010608068