Public R & D Policies and Cost Behavior of the US Manufacturing IndustriesThis paper estimates and evaluates the contributions of R & D tax incentives and publicly financed R & D investment policies in promoting growth of output and privately funded R & D investment in US manufacturing industries. Publicly financed R & D induces cost savings but crowds out privately-financed R & D investment while the incremental R & D tax credit and the immediate deductibility provision of R & D expenditures have a significant impact on privately financed R & D investment. The optimal mix of both instruments is an important element for sustaining a balanced growth in output and productivity in the manufacturing sector. |
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Page 10
... input demand price elasticities are reported in table 5 . The price elasticities of the input demands are calculated by eh , son ,, where 013 are the Allen elasticities of substitution and under our cost · h - function specification are ...
... input demand price elasticities are reported in table 5 . The price elasticities of the input demands are calculated by eh , son ,, where 013 are the Allen elasticities of substitution and under our cost · h - function specification are ...
Page 12
... inputs in low R & D intensive industries , but a weak substitute in high - tech industries , such as chemical ( 28 ) ... input demands with respect to the rate of immediate expensing of R & D expenditures . expensing has a much larger ...
... inputs in low R & D intensive industries , but a weak substitute in high - tech industries , such as chemical ( 28 ) ... input demands with respect to the rate of immediate expensing of R & D expenditures . expensing has a much larger ...
Page 14
... demand for inputs . The elasticity of the inputs ' demand is given by - Jln x ln ch - nc . + ( 1 / sh ) 41 . j - ( 8 ) ... input demands are reported in table 8. In addition we have calculated the effect of total publicly financed R & D ...
... demand for inputs . The elasticity of the inputs ' demand is given by - Jln x ln ch - nc . + ( 1 / sh ) 41 . j - ( 8 ) ... input demands are reported in table 8. In addition we have calculated the effect of total publicly financed R & D ...
Common terms and phrases
additional R&D expenditures after-tax cost American Economic Review Bernstein and Nadiri billion company-financed R&D capital cost function Cost Labor Physical depreciation rate effect of publicly Effects of R&D electrical equipment 36 estimates external publicly financed Federal financed R&D capital financed R&D performed firms G₁ Griliches gross output Hessian matrix incremental R&D tax input demands intermediate inputs Internal Jorgenson labor and intermediate low R&D intensive Mamuneas manufacturing industries manufacturing sector marginal benefits marginal cost reduction Martin Feldstein Mean Std Minimum Maximum Multifactor Productivity NBER Working Papers Number output parameters perpetual inventory Phys Physical Capital R&D post-tax price elasticities price of company-financed price of R&D Productivity Growth public R&D publicly financed R&D publicly-financed R&D capital publicly-funded R&D R&D capital stocks R&D intensive industries R&D Spending R&D tax credit R&D tax incentives R&D Tax Policy Rates of Return rental price Research and Development returns to scale Statistics Technology Xavier Sala-i-Martin