Kerr, William; Akcigit, Ufuk; Bloom, Nicholas; … - Society for Economic Dynamics - SED - 2012
We build a micro-founded model with endogenous firm innovation and growth. This enables us to examine the forces … jointly driving innovation, productivity and reallocation. We estimate this using simulated methods of moments on detailed US …. We find that a general entry subsidy increases growth rates by about 0.2%, but an R&D tax credit targeted at incumbent …