Grossmann, Volker; Steger, Thomas; Trimborn, Timo - CESifo - 2010
Previous research on optimal R&D subsidies has focussed on the long run. This paper characterizes the optimal time path … of R&D subsidization in a semi-endogenous growth model, by exploiting a recently developed numerical method. Starting … from the steady state under current R&D subsidization in the US, the R&D subsidy should significantly jump upwards and then …