Wang, Vey; Lai, Chung-Hui - 2010
&D-based growth model. The government not only subsidizes the R&D cost of the firms but also engages in R&D activities and, in … the expenditure. We find that in the economy there exist two balanced equilibrium growth paths. In an economy with a high … growth path, the government’s subsidy policy and its R&D activities will crowd out the private R&D activities, and hence the …