Ciaffi, Giovanna;
Deleidi, Matteo;
Mazzucato, Mariana;
(2024)
Measuring the macroeconomic responses to public investment in innovation: evidence from OECD countries.
Industrial and Corporate Change
10.1093/icc/dtae005.
(In press).
Preview |
Text
dtae005.pdf Download (9MB) | Preview |
Abstract
The paper aims to assess the macroeconomic impacts of government investment in Research and Development (R&D) and more generic fiscal policies by quantifying the Gross domestic product (GDP) and business R&D investment multipliers. Following the recent literature on fiscal policy, we combine the Local Projection approach with fiscal shocks estimated using Structural Vector Autoregressive modeling by focusing on a panel of 15 Organization for Economic Co-operation and Development (OECD) countries for the 1981–2017 period. Our findings support the idea that expansionary fiscal policies can positively and persistently affect the GDP level and crowd in business R&D investment. Additionally, our results show that public investment in R&D generates the largest multiplicative effect both on GDP and business R&D than the one associated with more generic public expenditures, even when fiscal expectations are considered.
| Type: | Article |
|---|---|
| Title: | Measuring the macroeconomic responses to public investment in innovation: evidence from OECD countries |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1093/icc/dtae005 |
| Publisher version: | http://dx.doi.org/10.1093/icc/dtae005 |
| Language: | English |
| Additional information: | Copyright © The Author(s) 2024. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https:// creativecommons.org/licenses/by/4.0/), which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited. |
| Keywords: | Social Sciences, Business, Economics, Management, Business & Economics, RESEARCH-AND-DEVELOPMENT, GOVERNMENT SPENDING MULTIPLIERS, FISCAL MULTIPLIERS, MONETARY-POLICY, STATE CAPACITY, PROCUREMENT, CHALLENGES, COMPLEMENT, CRISIS, SHOCKS |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > Inst for Innovation and Public Purpose |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10187123 |
Archive Staff Only
 |
View Item |
