The R&D tax credit in France: assessment and ex ante evaluation of the 2008 reform

Benoît Mulkay and Jacques Mairesse

Oxford Economic Papers, 2013, vol. 65, issue 3, 746-766

Abstract: This article presents an econometric analysis of the direct effects of the R&D tax credit (RTC) on private R&D in France and proposes an ex ante evaluation of the major reform implemented in 2008. We first estimate an error correction model of a dynamic R&D demand function on a large panel data of R&D doing firms, obtaining a preferred estimate of -0.4 for the long run elasticity of the user cost of R&D capital. We then perform a micro-simulation of the effects of the 2008 RTC reform that shows that the implicit long run budget multiplier would be about 0.7. Copyright 2013 Oxford University Press 2013 All rights reserved, Oxford University Press.

Date: 2013
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Working Paper: The R&D tax credit in France: assessment and ex ante evaluation of the 2008 reform (2013)
Working Paper: The R&D Tax Credit in France: Assessment and Ex-Ante Evaluation of the 2008 Reform (2013)
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