Motivation: With an annual tax expenditure of over 6 billion euros, the French Research Tax Credit (credit d’impôt recherche, CIR) is the main policy to support innovation (…)Read more
Public policies affecting firms fall broadly into two main categories: firm taxation on the one hand, and programs designed to support specific activities (innovation, exports) on the other hand. Policies supporting firms can take the form of financial aid (such as targeted loans or public guarantees) or tax credits targeted at certain activities (such as the Research Tax Credit). The important role of tax credits reflects the close links between business support policies and firm taxation.
Main themes. IPP researchers are interested in the economic justification of the various policies designed to support firm, the ability of such policies to achieve their stated objectives and evaluate their actual effects when implemented. They are also interested in the evolution of profit taxation and other elements of corporate taxation, including employer social security contributions and production taxes.
Methods. IPP researchers use several approaches to study how public policy affects firms. The analysis of schemes meant to support businesses consists in assessing their effects on individual or corporate behaviour and involves a wide range of ex-post evaluation methods. The analysis of corporate taxation is also based on micro-simulation methods applied to exhaustive corporate income tax returns data, making it possible to simulate the effects of alternative tax legislation in advance (ex-ante).
Programme director: Laurent Bach
Finished Projects (5)
The Heterogeneity of Implicit Tax Rates on Profits in France: Descriptive Findings and Explanatory Factors
Motivation: The French statutory corporate income tax (CIT) rate, i.e. the rate set by the law that applies to corporate income, is among the highest in the (…)Read more
The impact of CIFRE PhDs (Industrial Research Training Conventions) on firms’ R&D, the employment of PhD graduates, and public-private research partnerships
Motivation : what are the effects of such an atypical innovation policy which subsidizes firms to associate a PhD student to their research activities, thus bonding public and (…)Read more
Ongoing Projects (1)
Motivation: Implemented from 1988 to 2017, the wealth tax (ISF) was the only tax on the net stock of wealth in France that was both progressive and (…)Read more
IPP Policy Briefs n°70 - June 2021Will French companies be able to repay their state-backed loans (PGEs)?
Authors: Laurent Bach, Nicolas Ghio, Arthur Guillouzouic, Clément Malgouyres
IPP Policy Briefs n°68 - May 2021Gender pay gaps within companies
Authors: Thomas Breda, Paul Dutronc-Postel, Joyce Sultan Parraud, Maxime Tô
IPP Policy Brief n°53 - March 2020Propagation of shocks in global value chains: the coronavirus case
Authors: Elie Gerschel, Alejandra Martinez, Isabelle Mejean
IPP Policy Brief n°52 - March 2020Gender inequality within Firms: what does the professional equality index measure?
Authors: Thomas Breda, Paul Dutronc-Postel, Joyce Sultan, Maxime Tô
IPP Policy Brief n°48 - December 2019The cost of Brexit uncertainty: missing partners for French exporters
Authors: Julien Martin, Alejandra Martinez, Isabelle Mejean
IPP Report n°22 - March 2019Impact assessment of the 2008 reform of the research tax credit
Authors: Antoine Bozio, Sophie Cottet, Loriane Py
IPP Report n°21 - March 2019The heterogeneity of implicit corporate tax rates in France: descriptive findings and explanatory factors
Authors: Laurent Bach, Antoine Bozio and Clément Malgouyres
IPP Policy brief n°36 - October 2018What effects to expect from the conversion of the competitiveness and employment tax credit (CICE) into employer contribution reductions?
Authors: Antoine Bozio, Sophie Cottet and Clément Malgouyres
IPP Report n°19 - September 2018Change in corporate governance and firm performance
Authors: Laurent Bach, Sophie Cottet and Marion Monnet