IDEAS home Printed from https://ideas.repec.org/p/imp/wpaper/9028.html
   My bibliography  Save this paper

Constructing a price deflator for R&D: calculating the price of knowledge investments as a residual

Author

Listed:
  • Haskel, J
  • Goodridge, P
  • Corrado, C

Abstract

We model the production and use of knowledge investment and show how the model can be used to infer the unknown price of knowledge using two approaches. The first is often used by national accounting offices and is based on costs in the knowledge-producing sector. We show this implicitly assumes no market power and no productivity in the production of knowledge. We set out an alternative approach that focuses on the downstream knowledge-using sector, the final output sector. The science policy practice of using the GDP deflator is a simple variant of this approach, while the full approach allows market power and implies backing out the price of R&D from final output prices, factor costs, and TFP. We estimate a R&D price for the United Kingdom from 1985 to 2005 using the full approach. The index falls strongly relative to the GDP deflator suggesting conventionally-measured real R&D is substantially understated.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Haskel, J & Goodridge, P & Corrado, C, 2011. "Constructing a price deflator for R&D: calculating the price of knowledge investments as a residual," Working Papers 9028, Imperial College, London, Imperial College Business School.
  • Handle: RePEc:imp:wpaper:9028
    as

    Download full text from publisher

    File URL: http://spiral.imperial.ac.uk/bitstream/10044/1/9028/1/Haskel%202011-07.pdf
    Download Restriction: no

    Other versions of this item:

    Citations

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


    Cited by:

    1. Kevin J. Fox & Peter Goodridge & Jonathan Haskel & Gavin Wallis, 2017. "Spillovers from R&D and Other Intangible Investment: Evidence from UK Industries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63, pages 22-48, February.
    2. Corrado, Carol & Haskel, Jonathan & Iommi, Massimiliano & Jona-Lasinio, Cecilia, 2012. "Intangible Capital and Growth in Advanced Economies: Measurement and Comparative Results," CEPR Discussion Papers 9061, C.E.P.R. Discussion Papers.
    3. Carol Coorado & Jonathan Haskel & Cecilia Iona Lasinio & Massimiliano Iommi, 2012. "Intangible Capital and Growth Strategies for Advanced Economies: Measurement and Comparative Results," Working Papers LuissLab 12101, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    4. Carol A. Corrado & Janet X. Hao, 2014. "Brands As Productive Assets: Concepts, Measurement, and Global Trends," WIPO Economic Research Working Papers 13, World Intellectual Property Organization - Economics and Statistics Division.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imp:wpaper:9028. 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: (Dr David A Wilson). General contact details of provider: http://edirc.repec.org/data/sbimpuk.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.