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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 …
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Public agencies provide subsidies for small and medium sized businesses (SMEs) to foster their development in terms of employment and sales. Although input and output additionality have been researched intensively little is known about the actual long-term effects of subsidies on SME growth....
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