Relating the Knowledge Production Function to Total Factor Productivity: An Endogenous Growth Puzzle
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Summary:
The knowledge production function is central to R&D-based growth models. This paper empirically investigates the knowledge production function and intertemporal spillover effects using cointegration techniques. Time-series evidence suggests there are two long-run cointegrating relationships. The first captures a long-run knowledge production function; the second captures a long-run positive relationship between TFP and the knowledge stock. The results indicate the presence of strong intertemporal knowledge spillovers and that the long-run impact of the knowledge stock on TFP is small. This evidence is interpreted in light of existing theoretical and empirical evidence on endogenous growth.
Series:
Working Paper No. 2005/074
Subject:
Productivity Spillovers Stocks Total factor productivity Vector autoregression
English
Publication Date:
April 1, 2005
ISBN/ISSN:
9781451860931/1018-5941
Stock No:
WPIEA2005074
Pages:
39
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