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
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 |
| Library of Congress subject classification: | H Social Sciences > HB Economic Theory |
| Sets: | Collections > Economists Online Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD) Departments > Economics |
| Date Deposited: | 23 May 2008 11:31 |
| URL: | http://eprints.lse.ac.uk/5035/ |
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