TVRDOŇ, Michal and Tomáš VERNER. Government Support of Science and the Impact of the Crisis: The Case of the EU Countries. Amfiteatru Economic. 2022, vol. 24, Special Issue 16, p. 989-1000. ISSN 1582-9146. doi:10.24818/EA/2022/S16/989.
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Basic information
Original name Government Support of Science and the Impact of the Crisis: The Case of the EU Countries
Authors TVRDOŇ, Michal (203 Czech Republic, guarantor, belonging to the institution) and Tomáš VERNER (203 Czech Republic).
Edition Amfiteatru Economic, 2022, 1582-9146.
Other information
Original language English
Type of outcome Article in a journal
Field of Study 50202 Applied Economics, Econometrics
Country of publisher Romania
Confidentiality degree is not subject to a state or trade secret
WWW URL
RIV identification code RIV/47813059:19520/22:A0000331
Organization unit School of Business Administration in Karvina
Doi http://dx.doi.org/10.24818/EA/2022/S16/989
UT WoS 000880319000007
Keywords in English government R&D expenditure; business cycle; recession; EU; panel data
Changed by Changed by: doc. Mgr. Ing. Michal Tvrdoň, Ph.D., učo 20227. Changed: 22/11/2022 06:52.
Abstract
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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