Labor tax and relative cost of R&D

• Autorzy: Monika Lewandowska-Kalina
• Języki publikacji: EN

Abstrakty

EN

This paper examines the impact of taxation of labor on investment in Research and Development. Given the central role of R&D as an engine of business expansion and economy growth, issue of estimating the barriers to R&D is a vital one, both from theoretical and practical point of view. We analyse the impact of labor taxation on decision to invest in R&D. We show that labor taxation changes relative costs of R&D investment versus fixed capital formation. It leads to allocation of investment more towards physical capital formation than R&D investment. In the empirical part of the paper, using panel and cross-section of countries, we shed light on the impact of taxation of labor on R&D. Our estimates indicate that labor tax has a significant adverse impact on R&D investment, and its negative impact is larger for R&D than for physical capital. (original abstract)

Słowa kluczowe

EN

Taxation; Labour; Opportunity cost; Capital investments; R&D facility research; Labour taxation; Relative cost

PL

Opodatkowanie; Praca; Koszty alternatywne; Inwestycje kapitałowe; Placówki badawczo-rozwojowe; Opodatkowanie pracy; Koszty względne

• Czasopismo: Department of Applied Econometrics Working Papers
• Rocznik: 2014
• Numer: nr 1
• Strony: 19

Twórcy

autor

Monika Lewandowska-Kalina

• Warsaw School of Economics, Poland

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