The paper examines possible consequences of subsidies to R&D and to volume production proposed under the Clinton administration's flat panel display initiative. We do this in the context of a model in which firms behave competitively in the short run, while realizing that their choices of capacity and yield-improving R&D in the medium and long run will affect market price.
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Paper provided by Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER) in its series Papers with number
95-007.
Length: 23 pages Date of creation: 1995 Date of revision: Handle: RePEc:fth:purkib:95-007
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Kala Krishna & Marie Thursby, 1997.
"Whither Flat Panel Displays?,"
NBER Chapters,
in: The Effects of U.S. Trade Protection and Promotion Policies, pages 247-271
National Bureau of Economic Research, Inc.
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Find related papers by JEL classification: H2 - Public Economics - - Taxation, Subsidies, and Revenue O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
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