Template-type: ReDIF-Paper 1.0
Author-Name: Lokshin, Boris
Author-Email: lokshin@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Mohnen, Pierre 
Author-Email: mohnen@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Title: Measuring the Effectiveness of R&D Tax Credits in the Netherlands 
Abstract: This paper examines the impact of the Dutch R&D fiscal incentive 
	 program, known as WBSO, on R&D capital formation. Taking a factor-demand 
	 approach we measure the elasticity of firm R&D capital accumulation to 
	 its user cost. An econometric model is estimated using a rich unbalanced 
	 panel covering the period 1996-2004 with firm-specific R&D user costs 
	 varying with tax incentives. Using the estimated user cost elasticity, 
	 we examine the impact of the R&D incentive program. We find evidence 
	 that the program of R&D incentives in the Netherlands has been effective 
	 in reducing the user cost of R&D and in stimulating firms' investment in 
	 R&D. 
Classification-JEL: O32, O38, H25, H50, C23
Keywords: R&D tax credits, panel data, crowding out, user-cost elasticity, R&D,
	 fiscal incentives
Series: UNU-MERIT Working Papers
Creation-Date: 2007
Number: 2007-025
File-URL: https://unu-merit.nl/publications/wppdf/2007/wp2007-025.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2007025