High-Technology Subsidies in General Equilibrium: A Sector-Specific Approach
AbstractWe use a specific-factor model to examine the conditions under which policy-makers are able to increase aggregate production of high-tech goods by production or R&D-subsidies in the short and long run. The difficulties for the policy-makers in designing a subsidy scheme that succeeds in expanding aggregate high-tech production involve taking into account the trade-off between resources used in R&D and production of high-tech goods, the relative impact of different R&D activities on productivity, and the ease with which resources may be attracted from the non-high-tech sector of the economy to the various high-tech industries.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 467.
Length: 27 pages
Date of creation: Sep 1996
Date of revision:
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PRODUCTION; RESEARCH AND DEVELOPMENT; PRODUCTIVITY;
Other versions of this item:
- Karolina Ekholm & Johan Torstensson, 1997. "High-Technology Subsidies in General Equilibrium: A Sector-Specific Approach," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 1184-1203, November.
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
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