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Forschungs- und Entwicklungsaktivitäten in der Potenzialschätzung berücksichtigen
[Consider Research and Development Activities in the Potential Assessment]

Author

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  • Torsten Schmidt

    (RWI - Leibniz-Institut für Wirtschaftsforschung)

Abstract

Potential output is a measure of the longer-term production possibilities of an economy. Since this quantity cannot be observed directly, it must be determined on the basis of assumptions from existing data. The use of a production function was established in the European Commission’s procedure for calculating potential output. However, it is important to capture all drivers of economic growth. In the current EU procedure, total factor productivity (TFP), which is interpreted as a measure of technological progress, is assumed to be exogenous. This means that key drivers of economic growth, in particular research and development (R&D) activities, are not explicitly taken into account. An extension of the production function approach can be derived from the theory of endogenous growth. This would improve the theoretical basis of the potential output estimates.

Suggested Citation

  • Torsten Schmidt, 2022. "Forschungs- und Entwicklungsaktivitäten in der Potenzialschätzung berücksichtigen [Consider Research and Development Activities in the Potential Assessment]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(11), pages 842-844, November.
    • Handle: RePEc:spr:wirtsc:v:102:y:2022:i:11:d:10.1007_s10273-022-3327-9
    DOI: 10.1007/s10273-022-3327-9
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    References listed on IDEAS

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    1. Hall, Bronwyn H. & Mairesse, Jacques & Mohnen, Pierre, 2010. "Measuring the Returns to R&D," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1033-1082, Elsevier.
    2. Projektgruppe Gemeinschaftsdiagnose, 2022. "Gemeinschaftsdiagnose #1-2022 – Von der Pandemie zur Energiekrise – Wirtschaft und Politik im Dauerstress," WIFO Studies, WIFO, number 69833, April.
    3. Bronwyn H. Hall, 2010. "Measuring the Returns to R&D: The Depreciation Problem," NBER Chapters, in: Contributions in Memory of Zvi Griliches, pages 341-381, National Bureau of Economic Research, Inc.
    4. Bronwyn H. Hall & Nathan Rosenberg (ed.), 2010. "Handbook of the Economics of Innovation," Handbook of the Economics of Innovation, Elsevier, edition 1, volume 1, number 1.
    5. repec:adr:anecst:y:2005:i:79-80:p:14 is not listed on IDEAS
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    More about this item

    Keywords

    C10; E60; O40;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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