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Sequeira, T. N. & Ferreira-Lopes, A. (2014). Quantifying distortions from pollution in a R&D endogenous growth model. Estudios de Economía. 41 (1), 149-159
T. M. Sequeira and A. M. Lopes, "Quantifying distortions from pollution in a R&D endogenous growth model", in Estudios de Economía, vol. 41, no. 1, pp. 149-159, 2014
@article{sequeira2014_1732422041723, author = "Sequeira, T. N. and Ferreira-Lopes, A.", title = "Quantifying distortions from pollution in a R&D endogenous growth model", journal = "Estudios de Economía", year = "2014", volume = "41", number = "1", doi = "10.4067/S0718-52862014000100005", pages = "149-159", url = "http://www.estudiosdeeconomia.cl/" }
TY - JOUR TI - Quantifying distortions from pollution in a R&D endogenous growth model T2 - Estudios de Economía VL - 41 IS - 1 AU - Sequeira, T. N. AU - Ferreira-Lopes, A. PY - 2014 SP - 149-159 SN - 0304-2758 DO - 10.4067/S0718-52862014000100005 UR - http://www.estudiosdeeconomia.cl/ AB - In this note we study the distortions in an endogenous growth model developed by Grimaud and Tournemaine (2007), where new pieces of knowledge are produced in a R&D sector and used to reduce pollution emissions. Using this model along with a realistic calibration, we conclude that the economy strongly underinvests in R&D, such that the policy maker would need to implement a strong tax-subsidy scheme to correct it. We suggest that a subsidy to human capital can also decrease the gap between market and optimal allocations. ER -