Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83434
Authors: 
Horváth, Roman
Year of Publication: 
2011
Series/Report no.: 
IES Working Paper 19/2011
Abstract: 
We examine the effect of research and development (R&D) on long-term economic growth using the Bayesian model averaging (BMA) to deal rigorously with model uncertainty. Previous empirical studies investigated the effect of dozens of regressors on long-term growth, but they did not examine the effect of R&D due to data unavailability. We extend these studies by proposing to capture the R&D intensity by the number of Nobel prizes in science. Using our indicator, our estimates show that R&D exerts a positive effect on long-term growth with posterior inclusion probability of 0.25 using our preferred parameter and model priors.
Subjects: 
research and development
economic growth
Bayesian model averaging
JEL: 
O30
O32
O10
Document Type: 
Working Paper
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