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 …

We provide comparative evidence on R&D tax credit and subsidy programs by studying whether firms' participation in each … program participation. We find that true state dependence of participation in R&D subsidy and tax credit programs accounts …

We provide evidence that subsidy types that are identical in monetary terms differ in their behavioral responses and … than under grant. Both subsidy types are essentially very similar, only the mechanism of the subsidy application is … desired investment decisions by using a certain subsidy type. Particularly, our results suggest that when policymakers are …