Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/63486
Authors: 
Mazzoli, Marco
Year of Publication: 
2005
Series/Report no.: 
Research Paper, UNU-WIDER, United Nations University (UNU) 2005/70
Abstract: 
This paper introduces a discrete-time intertemporal investment model in which the flow of profits affects the risk premium on the cost of finance, and, as a consequence, the rate of discount of future profits. While public investments, according to a consolidated literature, constitute the main bulk of innovation policies, this model is used to comment and interpret the potential use of another, secondary, public policy, consisting of tax incentives for firms performing R&D expenditures and issuing securities in the stock market. Linking public policies for innovation to the stock market might help to reduce the problems of discretionality and the monitoring of public expenditure used to finance R&D and technical innovation.
Subjects: 
investment
intertemporal firm choice
capital structure
financing policy
JEL: 
D92
G32
ISBN: 
9291907588
Document Type: 
Working Paper

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