Is Private R & D Spending Sensitive to Its Price? Empirical Evidence on Panel Data for Italy
AbstractIn this paper empirical evidence is presented on the elasticity of private R&D spending on its price. A censored panel-data regression model with random effects is applied to a balanced panel of 726 Italian firms over the 1992-97 period. Implied estimates point out that Italian firms' response to policy measures (including tax credits), aimed at reducing the user cost of R&D capital, is likely to be substantial (1.50-1.77). Furthermore, we also find that the elasticity of R&D spending is higher in recession (2.01) than in expansion (0.87).
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Bibliographic InfoArticle provided by Springer in its journal Empirica.
Volume (Year): 30 (2003)
Issue (Month): 4 (December)
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Web page: http://www.springerlink.com/link.asp?id=100261
R & D user cost; panel data; tobit model;
Other versions of this item:
- Maria Laura Parisi & Alessandro Sembenelli, 2001. "Is Private R&D Spending Sensitive to Its Price? Empirical Evidence on Panel Data for Italy," Boston College Working Papers in Economics 493, Boston College Department of Economics.
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