<p>Suppose that Government aims to initiate R&amp;D support program to firms</p>
<p>The objective of the support program is to rise R&amp;D expenditures and productivity.</p>
<p>I have the following data variables:</p>
<p>Q: Output
K: Capital
L: Number of labors
RD: R&amp;D expenditures (total)
S: Support status (if supported, 1)(if not, 0)</p>
<p>This is panel data.</p>
<p>How can I test this objective? Which econometric analysis should I apply in order to test this objective? (Dif in Dif, or which regressions?)</p>
<p>note: I prefer to apply Diff in Diff method for Q (output) and also for RD (expenditure). As I read some articles about this, I see Tobit or Probit regression models where RD is taken as independent variable. But I have no idea why these regression models are applied. This is not econometrics courses. I don't have enough econometrics background. ( I only perfectly know time series )</p>
<p>I do not expect theoretically construction of estimation methods. I just want to learn about which methods are suitable for this objective.</p>

CC BY-SA 4.0
2022-01-30T00:11:58.593Z
This looks like school assignment can you please first share your ideas of what would be the best thing to do here?
1muflon1
CC BY-SA 4.0
2022-01-30T00:14:50.570Z
I have data set. I will apply econometric estimation methods. I try to only search for your professional ideas. @1muflon1
studentp
CC BY-SA 4.0
2022-01-30T00:16:51.847Z
o see no reason why you could not provide us with your attempt at constructing the model. Just say how do you think the model should look like eg y=a+b(R&D) … etc you don’t need to worry about getting it wrong but we have a rule that homework questions must show attempt before getting answers
1muflon1
CC BY-SA 4.0
2022-01-30T00:19:13.807Z
okay I added my ideas in the question part. Please can you share your ideas with me? @1muflon1 Thanks a lot.
studentp
CC BY-SA 4.0
2022-01-30T00:22:26.837Z
Sorry, this is not econometrics assignment, therefore I don't expect theoretically construction of the model. I also dont know how to construct the model. This is just R&D economics course. And accordingly, I just want to know application side. That's, I want to learn which methods are suitable for testing this objective? @1muflon1
studentp
<econometrics><self-study><technology><difference-in-difference>
Testing method for the performance of R&D support program
studentp
# Testing method for the performance of R&D support program

(Asked by: username_0 on 2022-01-29)

Suppose that Government aims to initiate R&D support program to firms

The objective of the support program is to rise R&D expenditures and productivity.

I have the following data variables:

Q: Output
K: Capital
L: Number of labors
RD: R&D expenditures (total)
S: Support status (if supported, 1)(if not, 0)

This is panel data.

How can I test this objective? Which econometric analysis should I apply in order to test this objective? (Dif in Dif, or which regressions?)

note: I prefer to apply Diff in Diff method for Q (output) and also for RD (expenditure). As I read some articles about this, I see Tobit or Probit regression models where RD is taken as independent variable. But I have no idea why these regression models are applied. This is not econometrics courses. I don't have enough econometrics background. ( I only perfectly know time series )

I do not expect theoretically construction of estimation methods. I just want to learn about which methods are suitable for this objective.

**Tags:** econometrics, self-study, technology, difference-in-difference

> **Comments:**
> **username_1**: This looks like school assignment can you please first share your ideas of what would be the best thing to do here?  
> **username_0**: I have data set. I will apply econometric estimation methods. I try to only search for your professional ideas. @username_1  
> **username_1**: o see no reason why you could not provide us with your attempt at constructing the model. Just say how do you think the model should look like eg y=a+b(R&D) … etc you don’t need to worry about getting it wrong but we have a rule that homework questions must show attempt before getting answers  
> **username_0**: okay I added my ideas in the question part. Please can you share your ideas with me? @username_1 Thanks a lot.  
> **username_0**: Sorry, this is not econometrics assignment, therefore I don't expect theoretically construction of the model. I also dont know how to construct the model. This is just R&D economics course. And accordingly, I just want to know application side. That's, I want to learn which methods are suitable for testing this objective? @username_1  

---

## 0 answers

