consider the equilibrium effects of a hiring subsidy, a payroll tax reduction, and an employment subsidy. While calibrating …) Act of 2010. We find that a hiring subsidy and a payroll tax deduction, as in the HIRE Act, can stimulate job creation in … credit ; employment subsidy ; unemployment insurance …

, smaller than in other years. This temporary decrease may be caused by an altered innovation subsidy scheme in crisis years or … by a different innovation investment behavior of the subsidy recipients. We do not find support for the countercyclical … innovation subsidy scheme having caused the smaller additionality effect and conclude that it is likely to be driven by subsidy …