J 2022

Government Support of Science and the Impact of the Crisis: The Case of the EU Countries

TVRDOŇ, Michal and Tomáš VERNER

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

Language

English

Type of outcome

Článek v odborném periodiku

Field of Study

50202 Applied Economics, Econometrics

Country of publisher

Romania

Confidentiality degree

není předmětem státního či obchodního tajemství

References:

RIV identification code

RIV/47813059:19520/22:A0000331

Organization unit

School of Business Administration in Karvina

UT WoS

000880319000007

Keywords in English

government R&D expenditure; business cycle; recession; EU; panel data
Změněno: 22/11/2022 06:52, prof. Mgr. Ing. Michal Tvrdoň, Ph.D.

Abstract

V originále

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.