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- handle: 10670/1.05gk44
- halshs: halshs-04330712
- doi: 10.1257/aer.20210107
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info:eu-repo/semantics/altIdentifier/doi/10.1257/aer.20210107
Mots-clés
D - Microeconomics/D.D2 - Production and Organizations/D.D2.D22 - Firm Behavior: Empirical Analysis K - Law and Economics/K.K3 - Other Substantive Areas of Law/K.K3.K31 - Labor Law L - Industrial Organization/L.L1 - Market Structure, Firm Strategy, and Market Performance/L.L1.L11 - Production, Pricing, and Market Structure • Size Distribution of Firms L - Industrial Organization/L.L5 - Regulation and Industrial Policy/L.L5.L51 - Economics of Regulation O - Economic Development, Innovation, Technological Change, and Growth/O.O3 - Innovation • Research and Development • Technological Change • Intellectual Property Rights/O.O3.O31 - Innovation and Invention: Processes and Incentives O - Economic Development, Innovation, Technological Change, and Growth/O.O3 - Innovation • Research and Development • Technological Change • Intellectual Property Rights/O.O3.O34 - Intellectual Property and Intellectual CapitalSujets proches
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Philippe Aghion et al., « The Impact of Regulation on Innovation », HAL-SHS : économie et finance, ID : 10.1257/aer.20210107
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Résumé
We present a framework that can be used to assess the equilibrium impact of regulation on endogenous innovation with heterogeneous firms. We implement this model using French firm-level panel data, where there is a sharp increase in the burden of labor regulations on companies with 50 or more employees. Consistent with the model’s qualitative predictions, we find a fall in the fraction of innovating firms just to the left of the regulatory threshold. Furthermore, we find a reduction in the innovation response of firms to demand shocks just below the threshold. Regulation reduces aggregate innovation by 5.7 percent.