TY - DATA T1 - Modeling the firm's response to research & Development tax credit policies PY - 2017/04/20 AU - Yuchen Li AU - Yada Zhu AU - Thomas O. Boucher UR - https://tandf.figshare.com/articles/dataset/Modeling_the_firm_s_response_to_research_Development_tax_credit_policies/4896848 DO - 10.6084/m9.figshare.4896848.v1 L4 - https://ndownloader.figshare.com/files/8231075 L4 - https://ndownloader.figshare.com/files/8231078 L4 - https://ndownloader.figshare.com/files/8231081 L4 - https://ndownloader.figshare.com/files/8231084 L4 - https://ndownloader.figshare.com/files/8231087 L4 - https://ndownloader.figshare.com/files/8231090 L4 - https://ndownloader.figshare.com/files/8231093 L4 - https://ndownloader.figshare.com/files/8231096 L4 - https://ndownloader.figshare.com/files/8231099 L4 - https://ndownloader.figshare.com/files/8231102 L4 - https://ndownloader.figshare.com/files/8231105 L4 - https://ndownloader.figshare.com/files/8231108 L4 - https://ndownloader.figshare.com/files/8231111 L4 - https://ndownloader.figshare.com/files/8231114 L4 - https://ndownloader.figshare.com/files/8231117 L4 - https://ndownloader.figshare.com/files/8231120 L4 - https://ndownloader.figshare.com/files/8231123 L4 - https://ndownloader.figshare.com/files/8231126 L4 - https://ndownloader.figshare.com/files/8231129 L4 - https://ndownloader.figshare.com/files/8231132 L4 - https://ndownloader.figshare.com/files/8231135 L4 - https://ndownloader.figshare.com/files/8231138 L4 - https://ndownloader.figshare.com/files/8231141 KW - manufacturing capacity expansion KW - on-going firms KW - Development tax credit policies KW - model N2 - In this paper we develop a microeconomic model of normative firm behavior under the incentive of a research and development (R&D) tax credit. The model is based on the well-known concept of a two factor learning model in which R&D expenditures and manufacturing capacity expansion are the principle determinants of cost reduction in a new technology product. We distinguish between the behavior of start-up firms and on-going firms and study the potential impacts of progressively larger R&D tax credits. We find highly significant differences in the potential impact of the credit on start-up firms versus on-going firms. We also find that the credit can significantly impact optimal product pricing of the technology when introduced into the marketplace. We examine the implications of this latter fact on the overall social cost of the R&D tax credit. ER -