Fiscal Policy, R&D and Innovation
(2021) NEKP01 20211Department of Economics
- Abstract
- Innovation, made possible through Research and Development (R&D) is a major driving force of economic growth. Due to its quasi-public good nature investments in R&D is usually below the social optimum. Governments use different policy instruments to correct this market failure. In this paper, the Westmore, 2014 paper is reexamined for the role of two fiscal policy instruments, Tax Incentives and Direct Funding, in stimulating private
investments in R&D. The analysis is extended for 27 OECD countries in the time period
2000-2017 using Dynamic Fixed Effects Model. Further, the role of income inequality in
the private investment in R&D is explored.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9043850
- author
- Martin, Maria LU
- supervisor
-
- Åsa Hansson LU
- organization
- course
- NEKP01 20211
- year
- 2021
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Innovation, R&D, Tax Incentives and Direct Funding, Dynamic Fixed Effects, Macroeconomic Panel Data, Income Inequality.
- language
- English
- id
- 9043850
- date added to LUP
- 2021-07-05 13:22:37
- date last changed
- 2021-07-05 13:22:37
@misc{9043850, abstract = {{Innovation, made possible through Research and Development (R&D) is a major driving force of economic growth. Due to its quasi-public good nature investments in R&D is usually below the social optimum. Governments use different policy instruments to correct this market failure. In this paper, the Westmore, 2014 paper is reexamined for the role of two fiscal policy instruments, Tax Incentives and Direct Funding, in stimulating private investments in R&D. The analysis is extended for 27 OECD countries in the time period 2000-2017 using Dynamic Fixed Effects Model. Further, the role of income inequality in the private investment in R&D is explored.}}, author = {{Martin, Maria}}, language = {{eng}}, note = {{Student Paper}}, title = {{Fiscal Policy, R&D and Innovation}}, year = {{2021}}, }