R&D Growth and Business Cycles Measured with an Endogenous Growth DSGE Model
Ryo Hasumi,
Hirokuni Iiboshi and
Daisuke Nakamura
MPRA Paper from University Library of Munich, Germany
Abstract:
We consider how and the extent to which a pure technology shock driven by R&D activities impacts on business cycles as well as economic growth, using a medium-scale neo-classical dynamic stochastic general equilibrium (DSGE) model following Comin and Gertler (2006). We try to identify a pure technology shock by adopting "intellectual property product" first entered in 2008 SNA which can be regarded as R&D activity, and by assuming "time to build" by Kydland and Prescott (1982) in the process converting from innovations to products. Our empirical result based on a Bayesian analysis reports a common stochastic trend driven by the pure technology shock is likely to be procyclical, and it accounts for nearly half of variation of the real GDP whose remaining is explained by business cycle components. Meanwhile, a TFP shock, substituting for the R&D shocks, seems to move the common trend independently with business cycle.
Keywords: R&D shock; technology shock; dynamic stochastic general equilibrium model; common stochastic trend; endogenous growth model (search for similar items in EconPapers)
JEL-codes: C32 E32 O47 (search for similar items in EconPapers)
Date: 2017-08-24
New Economics Papers: this item is included in nep-dge, nep-ino, nep-mac and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/85525/3/MPRA_paper_85525.pdf original version (application/pdf)
Related works:
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:pra:mprapa:85525
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().