Government Support of Science and the Impact of the Crisis: The Case of the EU Countries
The paper investigates government R&D spending during the business cycle. When analyzing this expenditure, it is important to mention two opposing aspects: on the one hand, government spending on R&D can be seen as a stimulus measure for the government to mitigate the effects of the reces...
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| Format: | Article |
| Language: | English |
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Editura ASE
2022-11-01
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| Series: | Amfiteatru Economic |
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| Online Access: | https://www.amfiteatrueconomic.ro/temp/Article_3157.pdf |
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| _version_ | 1850175549925752832 |
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| author | Michal Tvrdon Tomas Verner |
| author_facet | Michal Tvrdon Tomas Verner |
| author_sort | Michal Tvrdon |
| collection | DOAJ |
| description | The paper investigates government R&D spending during the business cycle. When
analyzing this expenditure, it is important to mention two opposing aspects: on the one hand,
government spending on R&D can be seen as a stimulus measure for the government to
mitigate the effects of the recession on the economy, – governments can decide to increase
public spending on R&D. However, on the other hand, the recession reduces public budget
revenues and prompts governments to reduce public spending, which very often negatively
affects R&D spending. Using panel data from 22 European Union countries for the period
2005 to 2019, we examine how government R&D expenditure varies over the business cycle.
Four estimates were performed in which explanatory variables were gradually added to the
model (OLS approach). The GMM approach includes all the variables at once. The
coefficient for government R&D expenditure is positive, high, and remains stable. This
implies that expenditure changes only gradually. The estimates give us evidence regarding
the pro-cyclical effect on government R&D expenditure and the Keynesian approach to
economic policy.
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| format | Article |
| id | doaj-art-c03ad2f38d9f4c1fbc214eb20ae5c87b |
| institution | OA Journals |
| issn | 1582-9146 2247-9104 |
| language | English |
| publishDate | 2022-11-01 |
| publisher | Editura ASE |
| record_format | Article |
| series | Amfiteatru Economic |
| spelling | doaj-art-c03ad2f38d9f4c1fbc214eb20ae5c87b2025-08-20T02:19:26ZengEditura ASEAmfiteatru Economic1582-91462247-91042022-11-0124Special Issue No. 16989100010.24818/EA/2022/S16/989 Government Support of Science and the Impact of the Crisis: The Case of the EU CountriesMichal Tvrdon 0https://orcid.org/0000-0001-9029-883XTomas Verner1https://orcid.org/0000-0003-4011-0549Silesian University in Opava, School of Business Administration, Karviná, Czech RepublicSilesian University in Opava, Department of Strategy and Analysis, Opava, Czech RepublicThe paper investigates government R&D spending during the business cycle. When analyzing this expenditure, it is important to mention two opposing aspects: on the one hand, government spending on R&D can be seen as a stimulus measure for the government to mitigate the effects of the recession on the economy, – governments can decide to increase public spending on R&D. However, on the other hand, the recession reduces public budget revenues and prompts governments to reduce public spending, which very often negatively affects R&D spending. Using panel data from 22 European Union countries for the period 2005 to 2019, we examine how government R&D expenditure varies over the business cycle. Four estimates were performed in which explanatory variables were gradually added to the model (OLS approach). The GMM approach includes all the variables at once. The coefficient for government R&D expenditure is positive, high, and remains stable. This implies that expenditure changes only gradually. The estimates give us evidence regarding the pro-cyclical effect on government R&D expenditure and the Keynesian approach to economic policy. https://www.amfiteatrueconomic.ro/temp/Article_3157.pdfgovernment r&d expenditurebusiness cyclerecessioneupanel data. |
| spellingShingle | Michal Tvrdon Tomas Verner Government Support of Science and the Impact of the Crisis: The Case of the EU Countries Amfiteatru Economic government r&d expenditure business cycle recession eu panel data. |
| title | Government Support of Science and the Impact of the Crisis: The Case of the EU Countries |
| title_full | Government Support of Science and the Impact of the Crisis: The Case of the EU Countries |
| title_fullStr | Government Support of Science and the Impact of the Crisis: The Case of the EU Countries |
| title_full_unstemmed | Government Support of Science and the Impact of the Crisis: The Case of the EU Countries |
| title_short | Government Support of Science and the Impact of the Crisis: The Case of the EU Countries |
| title_sort | government support of science and the impact of the crisis the case of the eu countries |
| topic | government r&d expenditure business cycle recession eu panel data. |
| url | https://www.amfiteatrueconomic.ro/temp/Article_3157.pdf |
| work_keys_str_mv | AT michaltvrdon governmentsupportofscienceandtheimpactofthecrisisthecaseoftheeucountries AT tomasverner governmentsupportofscienceandtheimpactofthecrisisthecaseoftheeucountries |