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|Title:||R&D and aggregate fluctuations |
Pourpourides, Panayiotis M.
|Issue Date:||2012 |
|Series/Report no.:||Cardiff Economics Working Papers E2012/2|
|Abstract:||Using US data for the period 1959-2007, we identify sectoral productivity shocks and capital investment-specific shocks by employing a Vector Autoregression whose shock structure is disciplined by a general equilibrium model. Controlling for real and nominal factors, we find that capital investment-specific shocks explain 70 percent of fluctuations of R&D investment while R&D technology shocks explain 30 percent of the variation of aggregate output net of R&D investment (i.e. the output of the non-R&D sector). Technology shocks jointly explain almost all the variation of output in the R&D sector and 78 percent of the variation of output in the non-R&D sector.|
|Document Type:||Working Paper|
|Appears in Collections:||Cardiff Economics Working Papers, Cardiff Business School, Cardiff University|
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