A R&D Based Real Business Cycle Model

Title: A R&D Based Real Business Cycle Model
Identifier: d_2009_2013:3db50e745198:10877
identifier: 11192
Creator: Fung, Ka Wai Terence,
Contributor: Jonathan Conning
Date: 2011
Language: English
Publisher: City University of New York.
Subject: Commerce-Business | endogenous growth | R&D | real busines cycle | research and development
Abstract: The New Keynesian Real Business Cycle model with staggered price adjustment is augmented with a R&D producing sector. Two sources of economic shocks are separately considered, namely random paricipation (perturbances to value of alternative investment opportunities in another sector) and financial intermediation (shocks to the cost of raising capital in the financial intermediation market). We find that, when comparing to the baseline model, both random participation and financial intermediation models can explain pro-cyclical R&D spending. Additionally the investment oversensitivity problem is corrected. However, only the financial intermediation model is consistent with the observed finding that the volatility of R&D is larger than that of investment and output.
Type: dissertation
Source: 2009_2013.csv
degree: Ph.D.
Program: Economics