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 6
... reported in table 1. The estimation period covers the years 1956 to 1988. A detailed description and construction of the variables of the model are reported in the appendix.3 Assuming that the errors attached to equations ( 3 ) and ( 4 ) ...
... reported in table 1. The estimation period covers the years 1956 to 1988. A detailed description and construction of the variables of the model are reported in the appendix.3 Assuming that the errors attached to equations ( 3 ) and ( 4 ) ...
Page 7
... reported ) were also jointly statistically significant , implying interindustry differences in technology . A number of hypothesis tests were carried out based on the likelihood ratio test . These tests are reported in table 3. First ...
... reported ) were also jointly statistically significant , implying interindustry differences in technology . A number of hypothesis tests were carried out based on the likelihood ratio test . These tests are reported in table 3. First ...
Page 12
... reported in table 6.11 This table has been constructed by multiplying the input price elasticities by the percentage change of rental R & D price due to a change in the incremental R & D tax credit . Similarly , in table 7 , we present ...
... reported in table 6.11 This table has been constructed by multiplying the input price elasticities by the percentage change of rental R & D price due to a change in the incremental R & D tax credit . Similarly , in table 7 , we present ...
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