Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/48122
Authors: 
Wälde, Klaus
Year of Publication: 
2003
Series/Report no.: 
Dresden discussion paper in economics 12/03
Abstract: 
Current explanations why a growing economy necessarily goes through booms and recessions predict countercyclical R&D investment. As this is very controversial from an empirical perspective, a stochastic Poissonmodel of endogenous business cycles and growth is presented where the determinants of the cyclical behaviour of R&D investment are analytically studied. Providing an explicit expression for the expected length of a cycle shows that high frequency fluctuations can indeed be understood by this approach. It is also shown how small technological improvements translate into large aggregate fluctuations.
Subjects: 
Endogenous fluctuations and growth
Uncertainty under continuous time
JEL: 
E32
O41
Document Type: 
Working Paper

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