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Innovative Activity Over the Buisness Cycle:an Alternative Interpretation

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Author Info
Yao,S.
Collins,A.

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Abstract

Geroski and Walters (1995) conclude that changes in manufacturing output Granger caused changes in innovative activity and that the latter fluctuated pro-cyclically during the period 1948-83 in the UK. This note shows that their modelling method is inappropriate and results misleading. Alternative VAR models are estimated showing no evidence supporting any of their conclusions. Moreover,neither of the two cointegration relationships (reluctantly) identified by Geroski and Walters are verified.

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Publisher Info
Paper provided by Portsmouth University - Department of Economics in its series Papers with number 64.

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Length: 18 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:fth:portec:64

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Postal: U.K.; University of Portsmouth; Department of Economics, Locksway Road, Milton, Southsea Hants PO4 8JF, UK
Phone: 44 (0)1705 844082
Fax: +44 (0)1705 844037
Web page: http://www.pbs.port.ac.uk/econ/index.html
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Related research
Keywords: INNOVATIONS; BUSINESS CYCLES;

Find related papers by JEL classification:
C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other

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