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Research Subsidies, Population Control Policies, and Growth

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  • Constantine Alexandrakis

Abstract

Several R&D‐based growth models without scale effects claim that subsidies to R&D are not conductive for economic growth while a faster growing population is. Yet, in an effort to maintain high growth rates, most OECD countries continue to subsidize R&D, while several developing countries are trying to control the size of their population. Are these countries misguided? This study introduces an R&D‐based growth model that is characterized by complementarities between technology and human capital. The model is free of scale effects and consistent with the above‐mentioned policies. By applying the model to US data the study uncovers a possible explanation for the productivity slowdown.

Suggested Citation

  • Constantine Alexandrakis, 2008. "Research Subsidies, Population Control Policies, and Growth," Review of Development Economics, Wiley Blackwell, vol. 12(1), pages 106-123, February.
    • Handle: RePEc:bla:rdevec:v:12:y:2008:i:1:p:106-123
    DOI: 10.1111/j.1467-9361.2007.00372.x
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