Government Preference and the Optimal Choice of R&D Subsidy Policy : Innovation Subsidy or Product Subsidy?
Author
Source
Journal of Applied Mathematics
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-9, 9 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-02-12
Country of Publication
Egypt
No. of Pages
9
Main Subjects
Abstract EN
Taking government preference into consideration, we consider a three-stage game model to compare the differences of innovation subsidy and product subsidy.
The findings reveal that stronger preference to consumers’ welfare leads to higher subsidy rates, which benefit not only consumers but also firms.
To choose between the two subsidies, the optimal choice varies with the changing preference of policymakers.
According to the results of numerical simulation, product subsidy is better than innovation subsidy in most cases, while the government’s expenditure of the former one is larger than the latter one.
Moreover, subsidizing firms symmetrically and asymmetrically has different effects on the consequences.
American Psychological Association (APA)
Yang, Yongcong. 2014. Government Preference and the Optimal Choice of R&D Subsidy Policy : Innovation Subsidy or Product Subsidy?. Journal of Applied Mathematics،Vol. 2014, no. 2014, pp.1-9.
https://search.emarefa.net/detail/BIM-479516
Modern Language Association (MLA)
Yang, Yongcong. Government Preference and the Optimal Choice of R&D Subsidy Policy : Innovation Subsidy or Product Subsidy?. Journal of Applied Mathematics No. 2014 (2014), pp.1-9.
https://search.emarefa.net/detail/BIM-479516
American Medical Association (AMA)
Yang, Yongcong. Government Preference and the Optimal Choice of R&D Subsidy Policy : Innovation Subsidy or Product Subsidy?. Journal of Applied Mathematics. 2014. Vol. 2014, no. 2014, pp.1-9.
https://search.emarefa.net/detail/BIM-479516
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-479516