R&D and Aggregate Fluctuations
The research and development (R&D) sector is considered one of the main driving forces of sustainable growth in the long run. The sector, however, also shows excessive volatility which raises interesting questions regarding the sources of this...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2012/03/16208631/rd-aggregate-fluctuations http://hdl.handle.net/10986/19864 |
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okr-10986-198642021-04-23T14:03:52Z R&D and Aggregate Fluctuations Pourpourides, Panayiotis M. Artuc, Erhan ACCOUNTING AGGREGATE DEMAND AGGREGATE SUPPLY ALLOCATION AUTOREGRESSION BENCHMARK BUSINESS CYCLE BUSINESS CYCLES BUSINESS HOURS BUSINESS R&D BUSINESS SECTOR BUSINESSES CAPITAL INVESTMENT CAPITAL STOCK CENTRAL BANK CENTRAL PLANNING CONSUMER PRICE INDEX CONSUMPTION EXPENDITURES COVARIANCE MATRIX DEFLATORS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY E-MAIL ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC RESEARCH ECONOMICS RESEARCH EMPLOYMENT EQUATIONS EQUILIBRIUM EQUIPMENT EXPENDITURES ON R&D EXPORTS EXTERNALITIES EXTERNALITY FLUCTUATIONS IN R&D FUTURE RESEARCH GDP GDP DEFLATOR GENERAL EQUILIBRIUM GOVERNMENT ORGANIZATIONS GROWTH RATE HUMAN CAPITAL ICT IMPACT OF R&D INDUSTRY R&D INFLATION INFLATION RATE INNOVATION INNOVATIONS INVENTION INVESTMENT IN R&D INVESTMENT IN RESEARCH LABOR MOBILITY LABOR PRODUCTIVITY LABOR STATISTICS LABOR SUPPLY LINKS BETWEEN R&D LOTTERIES MACROECONOMIC FLUCTUATIONS MACROECONOMICS MANUFACTURING MANUFACTURING INDUSTRIES MARKET PRICE MONETARY POLICY NATIONAL INCOME NATIONAL SCIENCE FOUNDATION NOMINAL INTEREST RATE OPEN ACCESS OPTIMAL ALLOCATION OUTPUTS PATENTS PC POLITICAL ECONOMY PRICE INDEXES PRICE OF R&D PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITIES PRODUCTIVITY PRODUCTIVITY GROWTH R&D R&D EXPENDITURES R&D INVESTMENT R&D PERFORMERS R&D SERVICES R&D SPENDING R&D STOCK R&D-INTENSIVE INDUSTRIES REAL GDP RECESSION RESEARCH DEPARTMENT RESEARCH GROUP RESULT RESULTS RETURNS TO SCALE SATELLITE SCIENCE FOUNDATION SHARE OF R&D STATISTICAL ANALYSIS STOCK OF CAPITAL TECHNOLOGICAL INNOVATIONS TOTAL OUTPUT TOTAL R&D TROUGH UTILITY FUNCTION WEALTH WEB WORKING HOURS The research and development (R&D) sector is considered one of the main driving forces of sustainable growth in the long run. The sector, however, also shows excessive volatility which raises interesting questions regarding the sources of this volatility as well as the nature of the relation between the sector and aggregate fluctuations. Using data from the United States Bureau of Economic Analysis and National Science Foundation, we show that technology innovations are the main source of fluctuations in R&D investment while R&D technology shocks are important in driving aggregate output fluctuations. After taking nominal innovations into consideration, such as shocks in monetary policy and inflation, capital investment-specific shocks explain 70 percent of fluctuations of R&D investment, while R&D technology shocks explain 30 percent of the variation in the output of the non-R&D sector. Technology innovations jointly explain most of the variation of output in the R&D sector and 78 percent of the variation of output in the rest of the economy. 2014-08-29T17:50:25Z 2014-08-29T17:50:25Z 2012-03 http://documents.worldbank.org/curated/en/2012/03/16208631/rd-aggregate-fluctuations http://hdl.handle.net/10986/19864 English en_US Policy Research Working Paper;No. 6017 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research UNITED STATES |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ACCOUNTING AGGREGATE DEMAND AGGREGATE SUPPLY ALLOCATION AUTOREGRESSION BENCHMARK BUSINESS CYCLE BUSINESS CYCLES BUSINESS HOURS BUSINESS R&D BUSINESS SECTOR BUSINESSES CAPITAL INVESTMENT CAPITAL STOCK CENTRAL BANK CENTRAL PLANNING CONSUMER PRICE INDEX CONSUMPTION EXPENDITURES COVARIANCE MATRIX DEFLATORS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC RESEARCH ECONOMICS RESEARCH EMPLOYMENT EQUATIONS EQUILIBRIUM EQUIPMENT EXPENDITURES ON R&D EXPORTS EXTERNALITIES EXTERNALITY FLUCTUATIONS IN R&D FUTURE RESEARCH GDP GDP DEFLATOR GENERAL EQUILIBRIUM GOVERNMENT ORGANIZATIONS GROWTH RATE HUMAN CAPITAL ICT IMPACT OF R&D INDUSTRY R&D INFLATION INFLATION RATE INNOVATION INNOVATIONS INVENTION INVESTMENT IN R&D INVESTMENT IN RESEARCH LABOR MOBILITY LABOR PRODUCTIVITY LABOR STATISTICS LABOR SUPPLY LINKS BETWEEN R&D LOTTERIES MACROECONOMIC FLUCTUATIONS MACROECONOMICS MANUFACTURING MANUFACTURING INDUSTRIES MARKET PRICE MONETARY POLICY NATIONAL INCOME NATIONAL SCIENCE FOUNDATION NOMINAL INTEREST RATE OPEN ACCESS OPTIMAL ALLOCATION OUTPUTS PATENTS PC POLITICAL ECONOMY PRICE INDEXES PRICE OF R&D PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITIES PRODUCTIVITY PRODUCTIVITY GROWTH R&D R&D EXPENDITURES R&D INVESTMENT R&D PERFORMERS R&D SERVICES R&D SPENDING R&D STOCK R&D-INTENSIVE INDUSTRIES REAL GDP RECESSION RESEARCH DEPARTMENT RESEARCH GROUP RESULT RESULTS RETURNS TO SCALE SATELLITE SCIENCE FOUNDATION SHARE OF R&D STATISTICAL ANALYSIS STOCK OF CAPITAL TECHNOLOGICAL INNOVATIONS TOTAL OUTPUT TOTAL R&D TROUGH UTILITY FUNCTION WEALTH WEB WORKING HOURS |
| spellingShingle |
ACCOUNTING AGGREGATE DEMAND AGGREGATE SUPPLY ALLOCATION AUTOREGRESSION BENCHMARK BUSINESS CYCLE BUSINESS CYCLES BUSINESS HOURS BUSINESS R&D BUSINESS SECTOR BUSINESSES CAPITAL INVESTMENT CAPITAL STOCK CENTRAL BANK CENTRAL PLANNING CONSUMER PRICE INDEX CONSUMPTION EXPENDITURES COVARIANCE MATRIX DEFLATORS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC RESEARCH ECONOMICS RESEARCH EMPLOYMENT EQUATIONS EQUILIBRIUM EQUIPMENT EXPENDITURES ON R&D EXPORTS EXTERNALITIES EXTERNALITY FLUCTUATIONS IN R&D FUTURE RESEARCH GDP GDP DEFLATOR GENERAL EQUILIBRIUM GOVERNMENT ORGANIZATIONS GROWTH RATE HUMAN CAPITAL ICT IMPACT OF R&D INDUSTRY R&D INFLATION INFLATION RATE INNOVATION INNOVATIONS INVENTION INVESTMENT IN R&D INVESTMENT IN RESEARCH LABOR MOBILITY LABOR PRODUCTIVITY LABOR STATISTICS LABOR SUPPLY LINKS BETWEEN R&D LOTTERIES MACROECONOMIC FLUCTUATIONS MACROECONOMICS MANUFACTURING MANUFACTURING INDUSTRIES MARKET PRICE MONETARY POLICY NATIONAL INCOME NATIONAL SCIENCE FOUNDATION NOMINAL INTEREST RATE OPEN ACCESS OPTIMAL ALLOCATION OUTPUTS PATENTS PC POLITICAL ECONOMY PRICE INDEXES PRICE OF R&D PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITIES PRODUCTIVITY PRODUCTIVITY GROWTH R&D R&D EXPENDITURES R&D INVESTMENT R&D PERFORMERS R&D SERVICES R&D SPENDING R&D STOCK R&D-INTENSIVE INDUSTRIES REAL GDP RECESSION RESEARCH DEPARTMENT RESEARCH GROUP RESULT RESULTS RETURNS TO SCALE SATELLITE SCIENCE FOUNDATION SHARE OF R&D STATISTICAL ANALYSIS STOCK OF CAPITAL TECHNOLOGICAL INNOVATIONS TOTAL OUTPUT TOTAL R&D TROUGH UTILITY FUNCTION WEALTH WEB WORKING HOURS Pourpourides, Panayiotis M. Artuc, Erhan R&D and Aggregate Fluctuations |
| geographic_facet |
UNITED STATES |
| relation |
Policy Research Working Paper;No. 6017 |
| description |
The research and development (R&D)
sector is considered one of the main driving forces of
sustainable growth in the long run. The sector, however,
also shows excessive volatility which raises interesting
questions regarding the sources of this volatility as well
as the nature of the relation between the sector and
aggregate fluctuations. Using data from the United States
Bureau of Economic Analysis and National Science Foundation,
we show that technology innovations are the main source of
fluctuations in R&D investment while R&D technology
shocks are important in driving aggregate output
fluctuations. After taking nominal innovations into
consideration, such as shocks in monetary policy and
inflation, capital investment-specific shocks explain 70
percent of fluctuations of R&D investment, while R&D
technology shocks explain 30 percent of the variation in the
output of the non-R&D sector. Technology innovations
jointly explain most of the variation of output in the
R&D sector and 78 percent of the variation of output in
the rest of the economy. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Pourpourides, Panayiotis M. Artuc, Erhan |
| author_facet |
Pourpourides, Panayiotis M. Artuc, Erhan |
| author_sort |
Pourpourides, Panayiotis M. |
| title |
R&D and Aggregate Fluctuations |
| title_short |
R&D and Aggregate Fluctuations |
| title_full |
R&D and Aggregate Fluctuations |
| title_fullStr |
R&D and Aggregate Fluctuations |
| title_full_unstemmed |
R&D and Aggregate Fluctuations |
| title_sort |
r&d and aggregate fluctuations |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2012/03/16208631/rd-aggregate-fluctuations http://hdl.handle.net/10986/19864 |
| _version_ |
1764443963725447168 |