Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5059986 | Economics Letters | 2013 | 4 Pages |
Abstract
We analyse the relative welfare effects of an R&D and an output subsidy in a mixed duopoly. We show that an R&D subsidy is beneficial for society as a whole, and socially superior to an output subsidy, when spillovers are sufficiently high. Otherwise, an output subsidy is socially superior.
⺠We consider a mixed duopoly with R&D or output subsidies. ⺠We analyse the relative welfare effects of the two subsidy schemes. ⺠An output subsidy is socially superior to an R&D subsidy if spillovers are low. ⺠An R&D subsidy is socially superior to an output subsidy if spillovers are high.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Dusanee Kesavayuth, Vasileios Zikos,