The Innovation Channel of Fiscal Space
Copyright policy )The Innovation Channel of Fiscal Space
<span>This paper examines the effects of shrinking fiscal space and the resulting fiscal consolidation on private and public expenditure in research and development (R&D). In a sample of OECD countries, we find R&D expenditure strongly influenced by the available fiscal space, with this relationship being particularly pronounced in less innovative countries. To better understand this relationship, we further explore a potential transmission channel: fiscal consolidation. Our analysis shows that the spending cuts in public allocations to R&D driven by fiscal adjustments are more pronounced in less innovative countries, suggesting the presence of a doom loop between consolidations and low domestic R&D intensity. Finally, the composition of consolidations matters: tax-based adjustments have a significantly negative impact on total domestic R&D spending, primarily due to the sharp contraction they induce in business R&D investments.</span>
selected citations These citations are derived from selected sources.This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).0 popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.Average influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).Average impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.Average
Citations provided by BIP!Popularity provided by BIP!