Effectiveness of Fiscal Incentives for R&D: Quasi-experimental Evidence

• 成果类型: Article
• 署名作者: Guceri, Irem; Liu, Li
• 署名单位: University of Oxford; International Monetary Fund
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20170403
• 发表日期: 2019
• 页码: 266-291
• 关键词: development tax credits; corporate-taxation; POLICY; PRODUCTIVITY; panel

摘要

We exploit a 2008 UK policy reform that increased the tax incentives for R&D in medium-sized enterprises relative to large ones, to over-come the endogeneity of exposure to such tax credits. We estimate a difference-in-difference design on the universe of corporation tax filings in the United Kingdom., combined with. other datasets. We find a positive and significant impact of tax credits for R&D, implying a user-cost elasticity estimate of around 1.6. This magnitude implies around $1 in additional private R&D spending per dollar foregone in tax revenue.