Schneider, Maik T.
- Working Paper
Rechte / LizenzIn Copyright - Non-Commercial Use Permitted
In this paper we study the incentives for basic-research investments by governments in a globalized world. For this purpose, we develop a two-country Schumpeterian growth model in which each country chooses its basic-research investments. We find that a country’s basic-research investments increase with the country’s level of human capital and decline with its ownmarket size. This may explain the large basic-research investments by small open economies. Compared with the optimal investments achievable when countries coordinate their basic-research policies, a single country may over-invest in basic research. However, in the decentralized case the total amount of basic-research investments is always below the socially optimal investment level, which justifies policy coordination in this area. Mehr anzeigen
Externe LinksSuchen via SFX
Zeitschrift / SerieEconomics Working Paper Series
VerlagETH Zurich, Center of Economic Research (CER-ETH)
ThemaBasic research; Public goods; Economic growth; Coordination of governments
Organisationseinheit02045 - Dep. Geistes-, Sozial- u. Staatswiss. / Dep. of Humanities, Social and Pol.Sc.
Zugehörige Publikationen und Daten
Is previous version of: http://hdl.handle.net/20.500.11850/105756