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http://hdl.handle.net/10419/18166
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| Title: | | R&D and price elasticity of demand  |
| Authors: | | Lucke, Dorothea Schröder, Philipp J. H. Schumacher, Dieter |
| Issue Date: | | 2004 |
| Series/Report no.: | | DIW-Diskussionspapiere 430 |
| Abstract: | | This note explores the relationship between the price elasticity of demand and the R&D intensity of the product. We introduce the concept of R&D intensity into a standard Dixit-Stiglitz/Krugman-type setting. R&D activity is treated as a fixed cost of production. Within this framework, sectors with a higher R&D intensity show a lower price elasticity of demand. This proposition is confirmed by an empirical investigation of export demand for manufactured goods from major industrialised countries. Consequently, real exchange rate changes have an impact on the commodity structure of exports. |
| Subjects: | | R&D intensity price elasticity exports |
| JEL: | | D40 F14 F12 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des DIW DIW-Diskussionspapiere
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