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http://hdl.handle.net/2445/116314
Title: | Sunk costs, extensive R&D subsidies and permanent inducement effects |
Author: | Arqué Castells, Pere Mohnen, Pierre |
Keywords: | Recerca industrial Subvencions Anàlisi de dades de panel Industrial research Subsidies Panel analysis |
Issue Date: | 2012 |
Publisher: | Institut d’Economia de Barcelona |
Series/Report no: | [WP E-IEB12/13] |
Abstract: | We study whether there is scope for using subsidies to smooth out barriers to R&D performance and expand the share of R&D firms in Spain. We consider a dynamic model with sunk entry costs in which firms’ optimal participation strategy is defined in terms of two subsidy thresholds that characterise entry and continuation. We compute the subsidy thresholds from the estimates of a dynamic panel data type-2 tobit model for an unbalanced panel of about 2,000 Spanish manufacturing firms. The results suggest that “extensive” subsidies are a feasible and efficient tool for expanding the share of R&D firms. |
Note: | Reproducció del document publicat a: http://www.ieb.ub.edu/2012022157/ieb/ultimes-publicacions |
It is part of: | IEB Working Paper 2012/13 |
URI: | http://hdl.handle.net/2445/116314 |
Appears in Collections: | IEB (Institut d’Economia de Barcelona) – Working Papers |
Files in This Item:
File | Description | Size | Format | |
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IEB12-13_ArqueCastells.pdf | 731.94 kB | Adobe PDF | View/Open |
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