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understand how firms react to each type of subsidy. In a three-stage game, the government chooses production and innovation … crowd out innovation. On the other hand, providing a production subsidy reduces the cost of the innovation subsidy, and vice … versa. The optimal production subsidy either increases monotonically with spillovers, or is U-shaped with respect to …
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The paper analyses the causal effect of capital subsidies on firms' efficiency and productivity by exploiting the … evolves over time, enabling to decompose productivity changes into the change in technical efficiency (i.e., measuring the …
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This paper tries to account for impact from both R&D tax incentives and subsidies policies on firm innovation in China. Unlike most of the literature, we look at the joint effect of the two R&D policies when they are awarded to firms simultaneously rather than separately, measuring firm...
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