Showing 1 - 10 of 2,114
taxable income US firms are allowed to deduct approximately all of their capital and R&D costs from sales revenue. Our … be allowed to deduct between 2-2.5 times their R&D costs and about 1.5-1.7 times their capital costs. Implementing the …
Persistent link: https://www.econbiz.de/10013141717
This paper analyzes the effect of firing costs on aggregate productivity growth. For this purpose, a model of … firms, and is sustained as entrants imitate the best incumbents. In this framework, firing costs not only induce … misallocation of labor, but also affect growth by affecting firms' exit decisions. Importantly, charging firing costs only to …
Persistent link: https://www.econbiz.de/10013316706
This paper examines the role of public education in the context of parental migration, and it studies the effects of an expansive income tax policy that is adopted to increase public education expenditure per pupil. It is shown that such a policy may exacerbate income inequality in the long run...
Persistent link: https://www.econbiz.de/10013146464
gradual reduction due to declining wealth inequality. A number of extensions to the basic model allow to match our theory with …
Persistent link: https://www.econbiz.de/10012777737
Current literature on the impact assessment of government innovation subsidies is mainly empirical driven and lacks an overarching theoretical model to explain the conditions under which government subsidies create positive additionalities on private R&D investment. In this paper, we present a...
Persistent link: https://www.econbiz.de/10014241969
This paper examines an economic union where oligopolistic firms produce by skilled and unskilled labor and do in-house Ramp;D by skilled labor. The planner of the union accepts new members to the union, regulates the labor market through a minimum wage for unskilled labor and supports firms by...
Persistent link: https://www.econbiz.de/10012764074
We discuss the two-way link between culture and economic growth. We present a model of endogenous technical change where growth is driven by the innovative activity of entrepreneurs. Entrepreneurship is risky and requires investments that affect the steepness of the lifetime consumption profile....
Persistent link: https://www.econbiz.de/10013063592
We extend the Lucas' 1988 model introducing two classes of agents with heterogeneous skills, discount factors and initial human capital endowments. We consider two regimes according to the planner's political constraints. In the first regime, that we call meritocracy, the planner faces...
Persistent link: https://www.econbiz.de/10012985671
hypothesis, but we find a significant effect of sunk costs on attendance for the 45% of students in our sample who are …
Persistent link: https://www.econbiz.de/10013058321
This paper analyzes the effect of firing costs on aggregate productivity growth. For thispurpose, a model of endogenous …
Persistent link: https://www.econbiz.de/10005861413