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Inter-Sectoral R & D Optimization: A Two-Sector Growth Model

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  • Ipek AKAD
  • İpek AKAD

Abstract

The main question in this work is to discover how the sectors impact on the economic growth of governments and how governments that aim economical growth optimally distribute R&D incentives among sectors. We develop Two-Sector Endogenous Growth Model allowing for consumers, sector representative firms and government. Metodology: numerical simulation of the model. Increased support to the sector that uses more technology, create more positive results for the economy. But, this results are ambiguous when applied at the same time the tax package and government incentives.

Suggested Citation

  • Ipek AKAD & İpek AKAD, 2016. "Inter-Sectoral R & D Optimization: A Two-Sector Growth Model," EcoMod2016 9629, EcoMod.
    • Handle: RePEc:ekd:009007:9629
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    Keywords

    Turkey; Growth; General equilibrium modeling (CGE);
    All these keywords.

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