2018年7月24日開催 公開研究会開催報告 （非線形経済理論研究会）

2018年 7月24日(木) 公開研究会を開催しました。

【テーマ】Subsidies and Self-funding

【報告者】  新井 泰弘 氏 （高知大学人文社会科学部 専任講師）

【日   時】 2018年７月24日（火）16:40～18:10

【場   所】 中央大学多摩キャンパス 2号館4階 研究所会議室3

【要   旨】

  This studies presents how the combination of subsidies and (implicit or explicit)

 commitment to self-funding affects R&D and its efficiency. We develop a simple

 model where a funding body, who does not know the true cost of a project,  requires

a credit-constrained recipient with private information to commit to a minimum

amount of self-funding for the project.

We demonstrate that such a commitment can help the funding body to direct

funds to recipients who genuinely require subsidies, and mitigates wasteful

diversion of funds. Self-funding commitment leads to “crowding-in”, where the

expected private R&D expenditure increases with the amount of subsidies, since

higher subsidies induce more high-cost projects to be undertaken whilst ensuring

at least some self-funding for any implemented project. 
  Meanwhile, requiring too much self-funding discourages socially desirable

projects due to the recipient’s own financing cost. We derive the optimal

subsidization policy, which depends crucially on the cost of funds for both the

funding body and the recipients, as well as the positive externalities of projects

and potential social loss from diversion.
We find that i) requiring self-funding commitment may be desirable only if the

funding body’s financing cost is lower than that of the recipient; and ii) self-

funding commitment is efficiency enhancing if the recipient’s cost of funding

and social loss from diversion are high, and the positive externalities from the

project are not too high.