TY  - JOUR
AU  - Hall,Bronwyn H.
AU  - Reenen,John van
TI  - How Effective are Fiscal Incentives for R&D?  A New Review of the       Evidence
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7098
PY  - 1999
Y2  - April 1999
UR  - http://www.nber.org/papers/w7098
L1  - http://www.nber.org/papers/w7098.pdf
N1  - Author contact info:
Bronwyn H. Hall
Dept. of Economics
549 Evans Hall
UC Berkeley
Berkeley, CA 94720-3880
Tel: 510/642-3878
Fax: 510/548-5561
E-Mail: bhhall@nber.org

John Van Reenen
Department of Economics
London School of Economics
Centre for Economic Performance
Houghton Street
London WC2A 2AE
UNITED KINGDOM
Tel: 00 44 207/955-6976
Fax: 00 44 207/955-6848
E-Mail: j.vanreenen@lse.ac.uk
AB  - This paper surveys the econometric evidence on the effectiveness of fiscal incentives for R&D. We describe the effects of tax systems in OECD countries on the user cost of R&D - the current position, changes over time and across different firms in different countries. We describe and criticize the methodologies used to evaluate the effect of the tax system on R&D behavior and the results from different studies. In the current (imperfect) state of knowledge we conclude that a dollar in tax credit for R&D stimulates a dollar of additional R&D.
ER  -