R&D and aggregate fluctuations

Arbeitspapier

Using US data for the period 1959-2007, we identify sectoral productivity shocks and capital investment-specific shocks by employing a Vector Autoregression whose shock structure is disciplined by a general equilibrium model. Controlling for real and nominal factors, we find that capital investment-specific shocks explain 70 percent of fluctuations of R&D investment while R&D technology shocks explain 30 percent of the variation of aggregate output net of R&D investment (i.e. the output of the non-R&D sector). Technology shocks jointly explain almost all the variation of output in the R&D sector and 78 percent of the variation of output in the non-R&D sector.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Cardiff Economics Working Papers ; No. E2012/2

Classification and Topics

• Classification: Wirtschaft ; Estimation: General ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Computable General Equilibrium Models ; Business Fluctuations; Cycles
• Subject: Cycles ; Productivity Shocks ; Investment-specific Shocks ; R&D ; VAR ; Forschung ; Investition ; Technischer Fortschritt ; Nachhaltige Entwicklung ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Artuç, Erhan ; Pourpourides, Panayiotis M.
• Event: Veröffentlichung
• (who): Cardiff University, Cardiff Business School
• (where): Cardiff
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/65723
• Last update: 10.03.2025, 11:42 AM CET