Optimal research and development expenditures under an incremental tax incentive scheme
The effect of an incremental tax incentive on optimal R and D spending of a profit maximizing firm is investigated. A dynamic programming approach permits the complete characterization of an optimal policy for a one- period-memory piecewise linear incentive scheme, and efficient computation of an \(\epsilon\)-optimal policy in the more general case.
one-period-memory piecewise linear incentive scheme
scientific article; zbMATH DE number 3902385