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

Lach, Saul and Schankerman, Mark (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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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:
Additional Information: © 1989 University of Chicago Press
Divisions: STICERD
Subjects: H Social Sciences > HB Economic Theory
Date Deposited: 23 May 2008 11:31
Last Modified: 01 Nov 2021 00:12

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