Agglomeration, Innovation, and Spatial Reallocation : The Aggregate Effects of R and D Tax Credits /

I investigate the aggregate effects of R and D tax credits in the US. Because it subsidizes R and D activity and because credit rates vary between states, this policy has both spatial and dynamic effects on the economy. To address this issue, I construct an endogenous growth model with spatial heter...

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Bibliographic Details
Main Author: Sollaci, Alexandre
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2022.
Series:IMF Working Papers; Working Paper ; No. 2022/131
Subjects:
Online Access:Full text available on IMF
Description
Summary:I investigate the aggregate effects of R and D tax credits in the US. Because it subsidizes R and D activity and because credit rates vary between states, this policy has both spatial and dynamic effects on the economy. To address this issue, I construct an endogenous growth model with spatial heterogeneity and agglomeration spillovers in innovation. Aggregate outcomes in this model are thus affected by the spatial distribution of the population in the economy, which is itself endogenous and reacts to policy. I use this framework to identify a set of local R and D subsidies that maximize aggregate welfare.
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Physical Description:1 online resource (92 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Access:Electronic access restricted to authorized BRAC University faculty, staff and students