It may be optimal from a welfare perspective to use R&D subsidies when the source of R&D distortions originates from the surplus appropriability problem and technological spillovers in the form of knowledge spillovers, creative destruction, and duplication externalities are absent. Hence, R&D...

The purpose of this paper is to investigate the relationship between private R&D, public innovation support transferred to the private sector, and productivity in Danish manufacturing. Two main conclusions are established. First, public innovation support has a positive and significant effect on...

Do inter-industry wage differentials reveal information on allocative inefficiency, implying that reallocation of labor input from low- to high-wage sectors improves aggregate productivity? This question is addressed by introducing wage-weighted averages of sector employment growth in growth...

This paper studies conversion factors based on the expenditure approach and evaluates the appropriateness for international comparisons of output levels in manufacturing. We apply a consistency check based on the insight that relative productivity levels should be invariant to the choice of base...

This paper challenges the idea that returns to schooling in self-employment are similar to those in wage work by establishing a non-linear relationship with very low returns for most educational levels in self-employment. We conclude that previous log-linear specifications in the self-employment...

The relationship between skill-upgrading and internationalization is addressed by decomposing import after country-of-origin and end-use of products. The break-down after country-of-origin is of crucial importance, implying that international trade with low-wage countries leads to comprehensive...

Relative wages have been remarkably rigid for the last two decades in Danish manufacturing despite large shifts in relative employment from unskilled labor towards skilled and educated labor. Assuming capital-skill complementarity and fixed relative wages as a consequence of labor market...

This article argues that the “fiscal trilemmaâ€â€”the tension between sufficient revenue and long-run fiscal sustainability on one side; medium- to long-run growth opportunities on the other; and progressivity and avoidance of inequality on the third side—is very much present...