Template-type: ReDif-Paper 1.0
Author-Name: Ziesemer, Thomas
Author-workplace-name: RS: GSBE MORSE, Macro, International & Labour Economics, RS: UNU-MERIT
Title: Internal rates of return for public R&D from VECM estimates for 17 OECD countries
Abstract: In this paper we evaluate vector-error-correction model (VECM) estimations and simulations of a companion paper to show (i) internal rates of return to public R&D shocks of 17 OECD countries, (ii) the related payback periods, gain/GDP ratios, and discounted (at 4%) net present values, (iii) the underlying effects of public R&D shocks on domestic and foreign private and public R&D stocks. 14 countries show high internal rates of return from positive public R&D shocks if projects are stopped when gains get negative. Three countries show crowding out effects and require (initial) reductions of public R&D before showing positive results through crowding in of private R&D.
Classification-JEL: h43,h54,o32,o47
Series: UNU-MERIT Working Papers
Creation-Date: 20230719
Number: 2023-026
File-URL: https://cris.maastrichtuniversity.nl/ws/files/144090711/wp2023-026.pdf
File-Format: application/pdf
File-Size: 586343
Handle: Repec:unm:unumer:2023026
DOI: