Rates Of Return On Physical And R&D Capital And Structure Of The Production Process: Cross Section And Time Series Evidence

Jeffrey I. Bernstein and M. Ishaq Nadiri

No 2570, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: R&D investment is an outcome of a corporate plan and is influenced by the exisintg technology, by prices, by product demand characteristics, and by the legacy of past capital stock decisions. In this paper we focus on the determinants and interaction of labor, physical capital and R&D. In particular, we investigate three major issues. The first relates to the nature of the factor substitution possibilities between the three inputs in response to changes in input pricees and estimate the own and cross once elasticities of the factors of production. The second problem pertains to the magnitude of which output expansion (or what may be considered the same thing, product demand growth) increases labor, physical, and R&D capital. Finally, we address the extent to which adjustment costs affect factor demands, and measure the magnitude of these costs for physical and R&D capital.

Date: 1988-04
Note: PR
View list of references View citations in EconPapers

Downloads: (external link)
http://www.nber.org/papers/w2570.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html.

Related works:
Working Paper: RATES OF RETURN ON PHYSICAL AND R&D CAPITAL AND STRUCTURE OF THE PRODUCTION PROCESS: CROSS SECTION AND TIME SERIES EVIDENCE (1988)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:nbr:nberwo:2570

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w2570
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().