The R&D tax credit in France: assessment and ex ante evaluation of the 2008 reform

B. Mulkay, J. Mairesse

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7 Citations (Scopus)

Abstract

This article presents an econometric analysis of the direct effects of the R&D tax credit (RTC) on private R&D in France and proposes an ex ante evaluation of the major reform implemented in 2008. We first estimate an error correction model of a dynamic R&D demand function on a large panel data of R&D doing firms, obtaining a preferred estimate of -0.4 for the long run elasticity of the user cost of R&D capital. We then perform a micro-simulation of the effects of the 2008 RTC reform that shows that the implicit long run budget multiplier would be about 0.7.
Original languageEnglish
Pages (from-to)746-766
Number of pages21
JournalOxford Economic Papers-New Series
Volume65
Issue number3
DOIs
Publication statusPublished - Jul 2013

Keywords

  • PANEL-DATA
  • DYNAMIC-MODELS
  • INVESTMENT

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