To cite this record: http://ddd.uab.cat/record/98304
Sunk costs, extensive R&D subsidies and permanent inducement effects
Arqué Castells, Pere
Mohnen, Pierre A.
Xarxa de Referència en Economia Aplicada (XREAP)

Imprint: Xarxa de Referència en Economia Aplicada (XREAP) 2012
Description: 44 p.
Series: XREAP ; 2012-10
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.
Rights: L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: Creative Commons
Language: Anglès.
Document: workingPaper
Subject: Recerca industrial ; Subvencions ; Espanya ; Industrial research ; Subsidies ; Spain

Adreça alternativa: http://hdl.handle.net/2072/196043


73 p, 401.7 KB

The record appears in these collections:
Research literature > Studies

 Record created 2012-08-31, last modified 2014-05-29



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