| Description |
1 online resource (43 pages) : illustrations, tables |
| Series |
IMF working paper ; WP/17/84 |
|
IMF working paper ; WP/17/84.
|
| Summary |
With growing academic and policy interest in research and development (R&D) tax incentives, the question about their effectiveness has become ever more relevant. In the absence of an exogenous policy reform, the simultaneous determination of companies' tax positions and their R&D spending causes an identification problem in evaluating tax incentives. To overcome this identification challenge, we exploit a U.K. policy reform and use the population of corporation tax records that provide precise information on the amount of firm-level R&D expenditure. Using difference-in-differences and other panel regression approaches, we find a positive and significant impact of tax incentives on R&D spending, and an implied user cost elasticity estimate of around -1.6. This translates to more than a pound in additional private R&D for each pound foregone in corporation tax revenue |
| Subject |
Finance, Public.
|
|
BUSINESS & ECONOMICS / Public Finance
|
|
Finance, Public
|
| Form |
Electronic book
|
| Author |
Liu, Li, author
|
| ISBN |
1475591306 |
|
9781475591309 |
|
1475591179 |
|
9781475591170 |
|
