Journal article
Effectiveness of fiscal incentives for R & D: quasi-experimental evidence
- Abstract:
- We exploit a 2008 UK policy reform that increased the tax incentives for R&D; in medium-sized enterprises relative to large ones, to overcome 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.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
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- Publisher copy:
- 10.1257/pol.20170403
Authors
+ University Of Oxford
More from this funder
- Grant:
- Oxford University Said Foundation Research Assistantship Fund
- Publisher:
- American Economic Association
- Journal:
- American Economic Journal: Economic Policy More from this journal
- Volume:
- 11
- Issue:
- 1
- Pages:
- 266-291
- Publication date:
- 2019-01-30
- Acceptance date:
- 2018-05-16
- DOI:
- ISSN:
-
1945-7731
- Pubs id:
-
pubs:847899
- UUID:
-
uuid:b1bab7f7-e0a0-423f-9755-253823dd3ba4
- Local pid:
-
pubs:847899
- Source identifiers:
-
847899
- Deposit date:
-
2019-02-05
- ARK identifier:
Terms of use
- Copyright holder:
- American Economic Association
- Copyright date:
- 2019
- Notes:
- Copyright © 2019 American Economic Association.
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