EconPapers    
Economics at your fingertips  
 

International endogenous growth, macro anomalies, and asset prices

Patrick Grüning

Journal of Economic Dynamics and Control, 2017, vol. 78, issue C, 118-148

Abstract: This paper develops a two-country production economy with complete and frictionless financial markets and international trade in which investments in research and development (R&D) by entrants lead to endogenous new firm creation and economic growth. Innovative entrants use both consumption goods in their innovation technologies to capture international technological spillovers. Households also consume both goods. Specifically, I compare the equilibrium implications from the model with technology spillovers to the ones from an equivalent model without technology spillovers, i.e. a model where entrants only use domestic final goods in their R&D expenditures. With these two models at hand, new insights on the interplay of endogenous growth and long-run risks, technology spillovers, complete financial markets, and international trade are obtained, particularly with respect to international macro and asset pricing anomalies. The novel technology spillover channel has the potential to help explaining a number of these anomalies.

Keywords: Innovation; Technology spillover; Endogenous growth; Long-run risk; International finance (search for similar items in EconPapers)
JEL-codes: E22 F31 G12 O30 O41 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165188917300593
Full text for ScienceDirect subscribers only

Related works:
Working Paper: International endogenous growth, macro anomalies, and asset prices (2015) Downloads
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: https://EconPapers.repec.org/RePEc:eee:dyncon:v:78:y:2017:i:c:p:118-148

Access Statistics for this article

Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok

More articles in Journal of Economic Dynamics and Control from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2018-09-14
Handle: RePEc:eee:dyncon:v:78:y:2017:i:c:p:118-148