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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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  • Katrin Hussinger

    (Centre for European Economic Research ZEW)

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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File URL: http://128.118.178.162/eps/pe/papers/0403/0403005.pdf
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Bibliographic 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
Date of revision:
Handle: RePEc:wpa:wuwppe:0403005

Note: Type of Document - pdf; pages: 33
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Web page: http://128.118.178.162

Related research

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

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References

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