Measuring the Effectiveness of R&D tax credits in the Netherlands
Lokshin, Boris and Mohnen, Pierre (2007). Measuring the Effectiveness of R&D tax credits in the Netherlands. UNU-MERIT.
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Author Lokshin, Boris
Mohnen, PierreTitle Measuring the Effectiveness of R&D tax credits in the Netherlands Publication Date 2007 Publisher UNU-MERIT Abstract This paper examines the impact of the Dutch R&D fiscal incentive program, known as WBSO, on R&D capital formation. Taking a factor-demand approach we measure the elasticity of firm R&D capital accumulation to its user cost. An econometric model is estimated using a rich unbalanced panel covering the period 1996-2004 with firm-specific R&D user costs varying with tax incentives. Using the estimated user cost elasticity, we examine the impact of the R&D incentive program. We find evidence that the program of R&D incentives in the Netherlands has been effective in reducing the user cost of R&D and in stimulating firms' investment in R&D. Keyword R&D tax credits
Panel data
Crowding out
User-cost elasticityJEL O32
O38
H25
H50
C23Copyright Holder UNU-MERIT Copyright Year 2007 ISSN 1871-9872 -
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