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problem of finding optimal tax and subsidy schemes in a model in which growth is endogenously sustained by risky innovation …
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substantial crowding-out of private investment. While the individual revenues increase due to the subsidy, the innovative activity … negative effects on overall welfare, depending on the subsidy specifics. However, subsidies do not influence cooperative …
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regime. An R&D subsidy is found suboptimal under symmetric information, whereas it can be optimal given information asymmetry …. This allows us to derive a combination of patent protection and R&D subsidy that yields the first-best results under …
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