Advanced Search
MyIDEAS: Login to save this book chapter or follow this series

An Extended Accelerator Model of R&D and Physical Investment

In: R & D, Patents, and Productivity

Contents:

Author Info

  • Jacques Mairesse
  • Alan K. Siu

Abstract

Using a multivariate autoregressive framework, we have found a simple causal structure for the variables of interest q, s, r, and i, which is consistent with our data. As expected from the stock market efficiency hypothesis, q, the stock market one period holding rate of return, is exogenous relative to the other three variables (or Granger causes them). As postulated in the traditional accelerator model of investment, the rate of growth of sales, s, can be also treated as exogenous to the rates of growth of R&D and physical. investment, r and i. Moreover, no strong feed- back interaction is detected between the last two (r and i). Within the simple structure of the extended accelerator model, the substantive conclusion is that R&D and physical investment react very similarly to the growth of the sales and to movements in q; the response of R&D is, however, more stable or less irregular than that of physical investment. Expected demand and expected profitability thus both appear to be important determinants for R&D expenditures and physical investment.

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.nber.org/chapters/c10055.pdf
Download Restriction: no

Bibliographic Info

as in new window

This chapter was published in:

  • Zvi Griliches, 1984. "R & D, Patents, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number gril84-1, October.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 10055.

    Handle: RePEc:nbr:nberch:10055

    Contact details of provider:
    Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
    Phone: 617-868-3900
    Email:
    Web page: http://www.nber.org
    More information through EDIRC

    Related research

    Keywords:

    Other versions of this item:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. M. Ishaq Nadiri & George C. Bitros, 1980. "Research and Development Expenditures and Labor Productivity at the Firm Level: A Dynamic Model," NBER Chapters, in: New Developments in Productivity Measurement, pages 387-418 National Bureau of Economic Research, Inc.
    2. Engle, Robert F & Foley, Duncan K, 1975. "An Asset Price Model of Aggregate Investment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(3), pages 625-47, October.
    3. Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
    4. Shiller, Robert J, 1981. "Do Stock Prices Move Too Much to be Justified by Subsequent Changes in Dividends?," American Economic Review, American Economic Association, vol. 71(3), pages 421-36, June.
    5. Lawrence H. Summers, 1980. "Inflation, Taxation, and Corporate Investment: A q-Theory Approach," NBER Working Papers 0604, National Bureau of Economic Research, Inc.
    6. George M. Von Furstenberg, 1977. "Corporate Investment: Does Market Valuation Matter in the Aggregate?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 8(2), pages 347-408.
    7. Zvi Griliches & Jacques Mairesse, 1981. "Productivity and R and D at the Firm Level," NBER Working Papers 0826, National Bureau of Economic Research, Inc.
    8. Christopher A. Sims, 1972. "Are There Exogenous Variables in Short-Run Production Relations," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 1, number 1, pages 16-35 National Bureau of Economic Research, Inc.
    9. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    10. Sims, Christopher A, 1972. "Money, Income, and Causality," American Economic Review, American Economic Association, vol. 62(4), pages 540-52, September.
    11. Jorgenson, Dale W, 1971. "Econometric Studies of Investment Behavior: A Survey," Journal of Economic Literature, American Economic Association, vol. 9(4), pages 1111-47, December.
    12. Pierce, David A. & Haugh, Larry D., 1977. "Causality in temporal systems : Characterization and a survey," Journal of Econometrics, Elsevier, vol. 5(3), pages 265-293, May.
    13. Thomas J. Sargent & Christopher A. Sims, 1977. "Business cycle modeling without pretending to have too much a priori economic theory," Working Papers 55, Federal Reserve Bank of Minneapolis.
    14. Granger, C. W. J., 1980. "Testing for causality : A personal viewpoint," Journal of Economic Dynamics and Control, Elsevier, vol. 2(1), pages 329-352, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Pardey, Philip G. & Craig, Barbara J., 1987. "Dynamics Of The Agricultural Research And Output Relationship," Staff Papers 13515, University of Minnesota, Department of Applied Economics.
    2. Manohar Singh & Sheri Faircloth, 2005. "The impact of corporate debt on long term investment and firm performance," Applied Economics, Taylor & Francis Journals, vol. 37(8), pages 875-883.
    3. Bronwyn H. Hall & Jacques Mairesse & Lee Branstetter & Bruno Crepon, 1999. "Does Cash Flow Cause Investment and R&D: An Exploration Using Panel Data for French, Japanese, and United States Scientific Firms," Finance 9902005, EconWPA.
    4. Zvi Griliches & Bronwyn H. Hall & Ariel Pakes, 1988. "R&D, Patents, and Market Value Revisited: Is There Evidence of A SecondTechnological Opportunity Related Factor?," NBER Working Papers 2624, National Bureau of Economic Research, Inc.
    5. Frank R. Lichtenberg, 1986. "Private Investment in R&D to Signal Ability to Perform Government Contracts," NBER Working Papers 1974, National Bureau of Economic Research, Inc.
    6. Matete, M.E. & Hassan, Rashid M., 2000. "Public sector agricultural research expenditures and output in Lesotho: Analysis of causality and cointegration," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 39(4), December.
    7. Saul Lach & Mark Schankerman, 1987. "The Interaction Between Capital Investment and R&D in Science-Based Firms," NBER Working Papers 2377, National Bureau of Economic Research, Inc.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:nbr:nberch:10055. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.