http://repub.eur.nl/res/concept/jel-O38/ Recent publications classified by JEL Code O38 en http://repub.eur.nl/static-eur/img/logo.png http://repub.eur.nl http://repub.eur.nl/res/pub/22550/ 2011-02-07T00:00:00Z We present a theoretical framework which allows for the comparison of the effectiveness of tax measures, loans and funding, in supporting industry-oriented research. We estimate for each of the instruments the exact contribution required by a firm to decide on investing in R&D, given the costs and probability of success of the project, and the foreseen change in profit following successful implementation of the research results. We apply Prospect Theory to analyse the risk attitude of the firm. By comparing the contribution required, we identify the instrument which is most effective, and therefore preferred by a government. Our analysis indicates that there exists a critical value for the probability of success of the project for which the modality of the most effective instruments changes. For a probability of success smaller than the critical value, a tax measures offering support only in case of successful completion of the project is preferred. For a probability higher than the critical value, a loan is most effective. The value of the critical probability depends on the perception of risk and loss aversion of the firm involved in the research. Heide, M.J.L. de Kothiyal, A. http://repub.eur.nl/res/pub/14202/ 2008-11-24T00:00:00Z Market-based instruments are believed to create more efficient incentives for firms to adopt new technologies than command-and-control policies. We compare the effects of a direct technology regulation and of an adoption subsidy under asymmetric information about the costs of technological advances in controlling the socially undesirable activities. We show that the policy maker may want to commit to her policy. The reason is that asymmetric information about adoption costs induces the policy maker to set subsidy levels that increase over time; firms, expecting higher subsidies in the future, postpone investment. Direct regulation offers a commitment possibility that allows to prevent firms from postponing investment. Ossokina, I.V. Swank, O.H. http://repub.eur.nl/res/pub/6784/ 2003-02-14T00:00:00Z Market-based instruments are believed to create more efficient incentives for firms to adopt new technologies than command-and-control policies. We compare the effects of a direct technology regulation and of an adoption subsidy under asymmetric information about the costs of technological advances in pollution control. We show that the policy maker may want to commit to her policy. The reason is that uncertainty about adoption costs induces the policy maker to set subsidy levels that increase over time; firms, expecting higher subsidies in the future, postpone investment. Direct regulation offers a commitment possibility that allows to prevent firms from postponing investment. Ossokina, I.V. Swank, O.H. http://repub.eur.nl/res/pub/1949/ 1997-01-01T00:00:00Z This paper endogenizes technology and human capital formation in the MESEM model that was developed by van Sinderen (Economic Modelling, 1993, 13, 285-300). Tax allowances for private R&D expenditures and public expenditures on both education and R& D are effective instruments to stimulate economic growth. Simulations with respect to market clearing, the importance of supply-side elements and key parameters (such as the magnitude of spillovers and substitution elasticities) reveal that tax allowances for private R & D are the most robust instrument to increase economic growth through the accumulation of knowledge. Contrary to other studies that find that technology policies typically reduce employment, we find that overall employment rises. Bergeijk, P.A.G. van Hagen, G.H.A. van Mooij, R.A. de Sinderen, J. van http://repub.eur.nl/res/pub/21531/ 1996-07-01T00:00:00Z This paper endogenizes technology and human capital formation in the MESEM model that was developed by van Sinderen (Economic Modelling, 1993, 13, 285-300). Tax allowances for private R&D expenditures and public expenditures on both education and R& D are effective instruments to stimulate economic growth. Simulations with respect to market clearing, the importance of supply-side elements and key parameters (such as the magnitude of spillovers and substitution elasticities) reveal that tax allowances for private R & D are the most robust instrument to increase economic growth through the accumulation of knowledge. Contrary to other studies that find that technology policies typically reduce employment, we find that overall employment rises. Bergeijk, P.A.G. van Hagen, G.H.A. van Mooij, R.A. de Sinderen, J. van