Featured paper · 2022
Optimal Taxation and R&D Policies
The R&D policy paper most cited by treasury economists. Combines an endogenous-growth model with an optimal-tax framework to compute the welfare-maximizing combination of corporate taxes, R&D subsidies, and patent-box treatment.
Ufuk Akcigit, Douglas Hanley, Stefanie Stantcheva. Econometrica, 2022.
The policy line
There is a determinate optimal R&D subsidy and corporate-tax pair. Most countries are at neither.
Summary
The R&D policy paper most cited by treasury economists. Combines an endogenous-growth model with an optimal-tax framework to compute the welfare-maximizing combination of corporate taxes, R&D subsidies, and patent-box treatment.
The Academy uses this paper as a primary text across its five pillars. The full text is available at the publisher.
