Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/65723 
Year of Publication: 
2012
Series/Report no.: 
Cardiff Economics Working Papers No. E2012/2
Publisher: 
Cardiff University, Cardiff Business School, Cardiff
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.
Subjects: 
Cycles
Productivity Shocks
Investment-specific Shocks
R&D
VAR
JEL: 
C13
C32
C68
E32
O3
Document Type: 
Working Paper

Files in This Item:
File
Size
557.44 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.