Research and development, profits, and firm value: A structural estimation

• 成果类型: Article
• 署名作者: Warusawitharana, Missaka
• 署名单位: Federal Reserve System - USA
• 刊物名称: QUANTITATIVE ECONOMICS
• ISSN/ISSBN: 1759-7323
• DOI: 10.3982/QE282
• 发表日期: 2015
• 页码: 531-565
• 关键词: Research and development; structural estimation; firm dynamics; Policy Evaluation

摘要

This study presents a model in which firms invest in research and development (R&D) to generate innovations that increase their underlying profitability and invest in physical capital to produce output. Estimating the model using a method of moments approach reveals that R&D expenditures contribute significantly to profits and firm value. The model also captures variation in R&D intensity, profits, and firm value across R&D-intensive industries. Counterfactual experiments suggest that changes in the distribution of firms in the economy may, over the long run, mitigate tax policy changes designed to encourage R&D expenditures.