The R&D tax credit in France: assessment and ex ante evaluation of the 2008 reform
AbstractThis article presents an econometric analysis of the direct effects of the R&D tax credit (RTC) on private R&D in France and proposes an ex ante evaluation of the major reform implemented in 2008. We first estimate an error correction model of a dynamic R&D demand function on a large panel data of R&D doing firms, obtaining a preferred estimate of -0.4 for the long run elasticity of the user cost of R&D capital. We then perform a micro-simulation of the effects of the 2008 RTC reform that shows that the implicit long run budget multiplier would be about 0.7. Copyright 2013 Oxford University Press 2013 All rights reserved, Oxford University Press.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Oxford Economic Papers.
Volume (Year): 65 (2013)
Issue (Month): 3 (July)
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Other versions of this item:
- Benoît Mulkay & Jacques Mairesse, 2013. "The R&D Tax Credit in France: Assessment and Ex-Ante Evaluation of the 2008 Reform," NBER Working Papers 19073, National Bureau of Economic Research, Inc.
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
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