An R&D-based real business cycle model

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• 作者：Ka Wai Terence Fung ; Chi Keung Marco Lau ; Kwok Ho Chan
• 关键词：Endogenous growth model ; Real business cycle ; Asymmetric information ; Research and development
• 刊名：International Review of Economics
• 出版年：2016
• 出版时间：December 2016
• 年：2016
• 卷：63
• 期：4
• 页码：327-358
• 全文大小：791 KB
• 刊物主题：Economic Policy; Game Theory/Mathematical Methods; Social Policy; Methodology and the History of Economic Thought; Law and Economics;
• 出版者：Springer Berlin Heidelberg
• ISSN：1863-4613
• 卷排序：63

文摘

The New Keynesian Real Business Cycle model with staggered price adjustment is augmented with an R&D producing sector. Two sources of economic shocks are considered, namely random participation (perturbances to the 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 compared to the baseline model, both models can explain procyclical 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 those of investment and output.