An R&D-based real business cycle model

doi:10.1007/s12232-016-0257-0

Details of Research Outputs

Title	An R&D-based real business cycle model
Creator	Fung，Ka Wai Terence 1; Lau，Chi Keung Marco 2; Chan，Kwok Ho 1
Date Issued	2016-12-01
Source Publication	International Review of Economics
ISSN	1865-1704
Volume	63 Issue:4 Pages:327-358
Abstract	The New Keynesian Real Business Cycle model with staggered price adjustment is augmented with an R&D producing sector. Two sources of economic shocks are considered, namely random participation (perturbances to the value of alternative investment opportunities in another sector) and financial intermediation (shocks to the cost of raising capital in the financial intermediation market). We find that, when compared to the baseline model, both models can explain procyclical R&D spending. Additionally, the investment oversensitivity problem is corrected. However, only the financial intermediation model is consistent with the observed finding that the volatility of R&D is larger than those of investment and output.
Keyword	Asymmetric information Endogenous growth model Real business cycle Research and development
DOI	10.1007/s12232-016-0257-0
URL	View source
Language	英语English
Scopus ID	2-s2.0-84969772227
Citation statistics	Cited Times [WOS]:0 [WOS Record] [Related Records in WOS]
Document Type	Journal article
Identifier	http://repository.uic.edu.cn/handle/39GCC9TT/6390
Collection	Beijing Normal-Hong Kong Baptist University
Corresponding Author	Fung，Ka Wai Terence
Affiliation	1.Division of Business and Management,United International College,Zhuhai,China 2.Newcastle Business School,Northumbria University,Newcastle upon Tyne,United Kingdom
First Author Affilication	Beijing Normal-Hong Kong Baptist University
Corresponding Author Affilication	Beijing Normal-Hong Kong Baptist University
Recommended Citation GB/T 7714	Fung，Ka Wai Terence,Lau，Chi Keung Marco,Chan，Kwok Ho. An R&D-based real business cycle model[J]. International Review of Economics, 2016, 63(4): 327-358.
APA	Fung，Ka Wai Terence, Lau，Chi Keung Marco, & Chan，Kwok Ho. (2016). An R&D-based real business cycle model. International Review of Economics, 63(4), 327-358.
MLA	Fung，Ka Wai Terence,et al."An R&D-based real business cycle model". International Review of Economics 63.4(2016): 327-358.

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