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dc.contributor.authorAloi, Marta
dc.contributor.authorLasselle, Laurence
dc.contributor.editorUniversity of St Andrews. School of Economics and Finance
dc.coverage.spatial20 p.en
dc.date.accessioned2009-04-13T15:50:05Z
dc.date.available2009-04-13T15:50:05Z
dc.date.issued2001
dc.identifier.citationSchool of Economics and Finance discussion paper series ; 0109en
dc.identifier.urihttp://ideas.repec.org/p/san/wpecon/0109.htmlen
dc.identifier.urihttp://hdl.handle.net/10023/653
dc.descriptionPreviously in the University eprints HAIRST pilot service at http://eprints.st-andrews.ac.uk/archive/00000060/en
dc.description.abstractWe consider an overlapping generation model based on Matsuyama (1999) and show that, whenever actual capital accumulation falls below its balanced growth path, subsidising innovators by taxing consumers has stabilising effects and increases welfare. Further, if the steady state is unstable under laissez faire, the introduction of the subsidy can make the steady state stable. Such a policy has positive welfare effects as it fosters output growth along the transitional adjustment path. Therefore, fast growing economies, in which high factor accumulation plays a crucial role alongside innovative sectors that enjoy temporary monopoly rents, should follow an unorthodox approach to stabilisation. Namely, taxing the consumers and reallocate resources to the innovative sectors.en
dc.format.extent383489 bytes
dc.format.mimetypeapplication/pdf
dc.language.isoenen
dc.publisherSchool of Economics and Finance, University of St Andrews.en
dc.subjectGrowthen
dc.subjectEndogenous Cyclesen
dc.subjectStabilisationen
dc.subjectInnovationen
dc.subjectSubsidyen
dc.subjectWelfareen
dc.subject.lccHen
dc.subject.lccHAen
dc.titleGrowing through subsidiesen
dc.typeWorking or discussion paperen
dc.description.versionPostprinten
dc.publicationstatusNot publisheden
dc.statusNon peer revieweden


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