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(In)determinacy, bargaining, and R&D policies in an economy with endogenous technological change

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  • Lai, Chung-hui
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    Abstract

    In this paper, the author shows how the introduction of a bargaining game structure into a standard R&D endogenous growth model can be a potential source of local indeterminacy. He also shows that on a high-growth path, the government, by directly engaging in R&D activities and using R&D subsidies, may not enhance economic growth. On a low-growth path, the government, by directly engaging in R&D activities and using R&D subsidies, may enhance economic growth. --

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    Bibliographic Info

    Paper provided by Kiel Institute for the World Economy in its series Economics Discussion Papers with number 2013-14.

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    Date of creation: 2013
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    Handle: RePEc:zbw:ifwedp:201314

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    Keywords: government R&D; innovation; endogenous growth; bargaining; indeterminacy;

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