Abstract
The aim of this paper is to analyze the role that aggregate R&D-expenditure plays in economic growth. We introduce a technology of innovation based on expenditure that generates endogenous sustainable growth in absence of any scale effect. This R&D-model permits us to study the effects of some fiscal policies. In particular, we analyze how subsidies to R&D-investment and physical capital accumulation affect the long-run growth rate. For the empirical cross-country analysis we directly derive a structural econometric model.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
