推文人 | 杜静玄
Zhao Chen,Zhikuo Liu,J.C.S Serrato,Daniel Yi Xu Nov,2019,working paper
We study a Chinese policy that awards substantial tax cuts to firms with R&D investment over a thresh-old, or notch. Quasi- experimental variation and administrative tax data show that firms significantlyincrease reported R&D, and that relabeling of expenses accounts for 30% of this increase. Accounting forrelabeling is crucial to obtain unbiased estimates of the productivity effects of real R&D and to quantifythe fiscal costs of stimulating R&D. We estimate a 9.8% productivity-to-R&D elasticity using a struc-tural model of investment and relabeling. Policy simulations show that selection into the program andrelabeling costs determine the cost-effectiveness of stimulating R&D.