Liquidity and Firms’ Response to Fiscal Stimulus

Abstract

A stimulus programme allowed firms in Italy to receive tax credits for R&D expenditure in 2009. Among traditional firms, liquidity is relevant to the response to the stimulus: recipients firms with relative large cash holdings raised R&D expenditure, while those with low liquidity did not vary it. High‐tech firms did not change their total R&D, consistent with their tendency to smooth R&D expenditure through time, though they changed its composition in favour of outsourcing activity and to the detriment of employment. When the fiscal stimulus pushed R&D higher, it also induced a positive transitory effect on the firm's performance.

The effects of R&D tax incentives and their role in the innovation policy mix

“…The results of the meta-analysis by Castellaci and Lie (2015) indicate substantially stronger effects of tax incentives in services industries, unlike this report, but are in line with the non-differential and significantly lower effects found for manufacturing and high-tech sectors respectively. Acconcia and Cantabene (2018), examining the effect of the 2009 R&D tax credit related stimulus programme in Italy, also find a lower effect for high-tech firms. By contrast, Freitas et al (2017) find tax incentives to have stronger input and output additionality effects on firms in industries with a strong R&D orientation.…”

“…Moreover, companies that had been selected to receive the R&D tax credit in 2009 were only allowed to use it in the years 2010 and 2011. Analysis by Acconcia and Cantabene (2018) implies an elasticity of about 0.8 on average. The implied elasticity is larger for firms with large cash holdings and lower for firms with low liquidity.…”

Causal impact evaluation of occupational safety policies on firms’ default using machine learning uplift modelling

“…The criterion through which participants were selected is exclusively based on timing. This particular policy evaluation scheme is well known in the econometric literature 39 due to its proximity to a randomized controlled trial (RCT) experiment, which represents the best policy design for public policy evaluation 40 . In this setting, we can effectively assume that the treatment is randomly provided to each firm participating to the tender, independently from their characteristics x .…”

Vergi Teşviklerinin İnovasyon Üzerindeki Etkisinin Panel Sur Yöntemi İle Analizi

“…Literatürde Ar-Ge ve inovasyon teşviklerinin etkilerini ölçmeye yönelik çalışmalar genel olarak firma bazında (Ernst & Spengel, 2011;Knoll vd. 2014;Acconcia & Cantabene, 2018;Colombo, 2019) ve ülke bazında (Hall & Van Reenen, 2000;Guellec & Pottelsberghe, 2000;Westmore 2013; Kutbay & Öz 2017) olmak üzere ayrılmıştır. Hall ve Van Reenen (2000), Ar-Ge'ye yönelik mali teşviklerin etkinliğine ilişkin ampirik kanıtları inceleyen çalışma gerçekleştirmiştir.…”