On the timing of innovation in stochastic schumpeterian growth models
By: Gadi Barlevy.
Series: Working paper series ;; WP-2004-11; Working paper series (Federal Reserve Bank of Chicago. Research Dept. : Online) ;; WP-2004-11.
Publisher: Federal Reserve Bank of Chicago
Published: 2004
Place of publication: [Chicago, Ill.]
Language: eng
Format: Electronic resource
Description: "Recent work has revived the Schumpeterian hypothesis that recessions facilitate innovation and growth.  But a major source of productivity growth, research and development, is actually procyclical.  This paper argues that while it is optimal to concentrate growthenhancing activities in downturns, dynamic spillovers inherent to the R&D process lead private agents to concentrate too much of their R&D activity in booms, precisely when its social cost is highest.  Thus, while previous literature has argued recessions promote growth and intertemporal substitution is a desirable consequence of fluctuations, in the case of R&D recessions discourage growth and intertemporal substitution proves to be a social liability"--Federal Reserve Bank of Chicago web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 9/29/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.