problem of finding optimal tax and subsidy schemes in a model in which growth is endogenously sustained by risky innovation … government provide incentives for innovation in a fiscally sustainable way? We address this question by examining the Ramsey …. We characterize the shadow value of growth and entry in the innovation sector. We find that a profit tax is required to …

Offering unemployed individuals a subsidy to become self-employed is a widespread active labor market policy strategy … survival, but lag behind regular business founders in terms of income, business growth and innovation. Moreover, we show that …

survival rates and little contribution to job creation, economic growth, and innovation. In this paper, we use a rich data set … to compare participants of a German start-up subsidy program for unemployed individuals to a group of regular founders … who started from non-unemployment and did not receive the subsidy. The data allows us to analyze their business …