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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/18864| Title: | How to promote R&D-based growth? : public education expenditure on scientists and engineers versus R&D subsidies |
| Keywords: | O31 H20 O41 O38 ddc:330 education policy endogenous growth R&D subsidies scientists and engineers Hochschulfinanzierung Öffentliche Bildungsausgaben Forschungssubvention Vergleich Neue Wachstumstheorie Bildungsverhalten Theorie |
| Issue Date: | 16-Oct-2013 |
| Publisher: | |
| Description: | Empirical evidence suggests that positive externalities from R&D exceed negative ones. According to conventional wisdom, this calls for R&D subsidies. This paper develops a quality-ladder growth model with overlapping generations which evaluates the positive and normative implications of R&D subsidies and compares them with the effects of public education policy to promote R&D. Unlike standard growth models, the proposed framework accounts for the specificity of science and engineering (S&E) skills, where individuals endogenously choose the type of education, and allows for heterogeneity in individual ability. Although intertemporal knowledge spillovers are hypothesized and negative R&D externalities are absent, the analysis shows somewhat surprisingly that R&D subsidies may be detrimental to both productivity growth and welfare, in contrast to publicly provided education targeted to S&E skills. Finally, the optimal structure of public education spending on different skills is examined. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/18864 |
| Other Identifiers: | http://hdl.handle.net/10419/18864 ppn:391082507 |
| Appears in Collections: | EconStor |
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