01884cas a2200289 a 4500 AALejournalIMF023103 230101c9999 xx r poo 0 0eng d 20.00 USD 9798400212666 1018-5941 BD-DhAAL BD-DhAAL Sollaci, Alexandre. Agglomeration, Innovation, and Spatial Reallocation : The Aggregate Effects of R and D Tax Credits / Alexandre Sollaci. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (92 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Industrial Organization and Macroeconomics imf Industrial Price Indices imf Innovation imf Macroeconomics imf IMF Working Papers; Working Paper ; No. 2022/131 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=131 IMF e-Library