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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

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.

Suggested Citation

  • Lai, Chung-hui, 2013. "(In)determinacy, bargaining, and R&D policies in an economy with endogenous technological change," Economics Discussion Papers 2013-14, Kiel Institute for the World Economy (IfW).
  • Handle: RePEc:zbw:ifwedp:201314
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    References listed on IDEAS

    as
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    More about this item

    Keywords

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

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • L00 - Industrial Organization - - General - - - General

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