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R&D and Subsidies at the Firm Level: An Application of Parametric and Semi-Parametric Two-Step Selection Models

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Author Info
Katrin Hussinger (Centre for European Economic Research ZEW)

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Abstract

This paper analyzes the effects of public subsidies on R&D expenditure in the German manufacturing sector. The focus is on the question whether public R&D funding stimulates or crowds out private investment. Cross sectional data at the firm level is used. By applying parametric and semiparametric selection models, it turns out that public funding increases firms' R&D expenditure. Altough the magnitude of the treatment effect depends on the assumptions imposed by the particular selection model.

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Publisher Info
Paper provided by EconWPA in its series Public Economics with number 0403005.

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Length: 33 pages
Date of creation: 26 Mar 2004
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Handle: RePEc:wpa:wuwppe:0403005

Note: Type of Document - pdf; pages: 33
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Web page: http://129.3.20.41

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Related research
Keywords: Innovation; Public R&D Subsidies; Policy Evaluation; Paramteric and Semiparametric Two-Step Selection Models;

Other versions of this item:

Find related papers by JEL classification:
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models
H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  3. Manski, C.F., 1990. "The Selection Problem," Working papers 90-12, Wisconsin Madison - Social Systems.
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  5. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-94, July. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. David Marmet, 2004. "Growth of New Firms : Which Factors Influence Post-Entry Performance? An Empirical Analysis Based on Swiss Firm Data," KOF Working papers 04-97, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
  2. João Alberto De Negri & Mauro Borges Lemos & Fernanda De Negri, 2006. "The Impact of University Enterprise Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms," OVE Working Papers 1306, Inter-American Development Bank, Office of Evaluation and Oversight (OVE). [Downloadable!]
  3. João Alberto De Negri & Mauro Borges Lemos & Fernanda De Negri, 2006. "Impact of P&D Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms," OVE Working Papers 1406, Inter-American Development Bank, Office of Evaluation and Oversight (OVE). [Downloadable!]
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