Zeng, Jinli; Zhang, Jie - School of Economics, University of Queensland
This paper compares different subsidies in an R&D growth model with competitive suppliers of a final good and … monopolistic suppliers of intermediate goods. Unlike existing studies with lump-sum taxes and fixed labor, we assume distortionary … welfare, the R&D subsidy may also be more effective than the other subsidies and all of them are dominated by their mix, but …