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Strategic and tactical decisions, sunk costs and firm size effects in R&D

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  • Vossen, Robert W.

    (Groningen University)

Abstract

This paper investigates asymmetric effects of monetary policy over the business cycle. A two-state Markov Switching Model is employed to model both recessions and expansions. For the United States and Germany, strong evidence is found that monetary policy is more effective in a recession than during a boom. Also some evidence is found for asymmetry in the United Kingdom and Belgium. In the Netherlands, monetary policy is not very effective in either regime.

Suggested Citation

  • Vossen, Robert W., 1998. "Strategic and tactical decisions, sunk costs and firm size effects in R&D," Research Report 98B19, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    • Handle: RePEc:gro:rugsom:98b19
    as

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    File URL: http://irs.ub.rug.nl/ppn/174869053
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    References listed on IDEAS

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    Cited by:

    1. Valdemar Smith & Erik Strøjer Madsen, 2001. "Investment in R&D and Corporate Governance," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(2), pages 263-274.
    2. Robert Vossen, 1999. "Market Power, Industrial Concentration and Innovative Activity," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(4), pages 367-378, December.

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