Economic Growth Analysis of Japan by Dynamic General Equilibrium Model with R&D Investment

Akiyuki Tonogi
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Akiyuki Tonogi: Faculty of Economics, Toyo University

Public Policy Review, 2017, vol. 13, issue 3, 207-240

Abstract: The purpose of this study is to evaluate the role of R&D capital stock in Japan fs economic growth and consider the effects of science and technology policies, including public R&D expenditures, on the economic growth based on a general equilibrium dynamic model incorporating the nature of R&D capital as a public good. After developing data of R&D capital investment and capital stock and arranging SNA data on the basis of 2008SNA, we develop a numerical model by estimating or calibrating the structural parameters of a twosector dynamic general equilibrium model. A growth account using the production function of final goods production and R&D production shows that the TFP growth rates of both final goods production and R&D production have declined since the 1990s. As a result of a policy simulation incorporating the role of the spillover effects of public R&D into the model, it is found that an increase in public R&D investment significantly increases not only R&D production but also final goods production and household consumption.

Keywords: Research and Development Investment; Dynamic General Equilibrium Model; Growth Accounting; Policy Simulation (search for similar items in EconPapers)
JEL-codes: E01 E17 E22 O38 O41 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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