Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/303248 
Year of Publication: 
2024
Series/Report no.: 
ISER Discussion Paper No. 1258
Publisher: 
Osaka University, Institute of Social and Economic Research (ISER), Osaka
Abstract: 
This paper examines the effect of growth-enhancing policies in an R&D-based endogenous growth model when the government does not have the ability to raise taxes to finance the required expenses. We show that the government can increase the economic growth rate by debt-financed R&D subsidies while perpetually rolling over the debt, if the productivity of research workers in product development is higher than a threshold. If the condition is not met, the government debt becomes unsustainable, or the growth rate is reduced by subsidy.
Subjects: 
Economic Growth
Endogenous Growth
Public Debt
Ponzi Scheme
Research Subsidy
JEL: 
O38
O41
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.