R&D and Aggregate Fluctuations

Erhan Artu and Panayiotis Pourpourides
Authors registered in the RePEc Author Service: Erhan Artuç

No E2012/2, Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section

Abstract: 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.

Keywords: Productivity Shocks; Investment-specific Shocks; R&D; VAR (search for similar items in EconPapers)
JEL-codes: C13 C32 C68 E32 O3 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2012-01
New Economics Papers: this item is included in nep-ino, nep-pbe and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: R&D and aggregate fluctuations (2014)
Working Paper: R&D and Aggregate Fluctuations (2012)
Working Paper: R&D and aggregate fluctuations (2012)
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