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.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19073.
Date of creation: May 2013
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Publication status: published as Benoï¿½t Mulkay & Jacques Mairesse, 2013. "The R&D tax credit in France: assessment and ex ante evaluation of the 2008 reform," Oxford Economic Papers, Oxford University Press, vol. 65(3), pages 746-766, July.
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- Benoï¿½t Mulkay & Jacques Mairesse, 2013. "The R&D tax credit in France: assessment and ex ante evaluation of the 2008 reform," Oxford Economic Papers, Oxford University Press, vol. 65(3), pages 746-766, July.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ACC-2013-06-04 (Accounting & Auditing)
- NEP-ALL-2013-06-04 (All new papers)
- NEP-CMP-2013-06-04 (Computational Economics)
- NEP-INO-2013-06-04 (Innovation)
- NEP-PBE-2013-06-04 (Public Economics)
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