Dynamics of r&d and investment in the scientific sector.

Lach, Saul and Schankerman, Mark ORCID: 0009-0006-1071-7672 (1989) Dynamics of r&d and investment in the scientific sector. Journal of Political Economy, 97 (4). pp. 880-904. ISSN 0022-3808

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Abstract

This paper empirically explores the dynamic interactions among research and development, capital investment, and the stock market performance of 191 firms in science-based industries during the period 1973-81. Using a framework based on dynamic factor analysis, we test asymmetric specifications of the dynamics between R & D and investment. The data indicate that R & D Granger-causes investment but that investment does not Granger-cause R & D. We discuss interpretations of this causal ordering, characterize the stylized facts of the movements over time of R & D and investment, and measure the stock market valuation of these movements.

Item Type:	Article
Official URL:	http://www.journals.uchicago.edu/loi/jpe
Additional Information:	© 1989 University of Chicago Press
Divisions:	STICERD Economics
Subjects:	H Social Sciences > HB Economic Theory
Date Deposited:	23 May 2008 11:31
Last Modified:	11 Dec 2024 21:55
URI:	http://eprints.lse.ac.uk/id/eprint/5035

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