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dc.contributor.authorChernyshev, Nikolay
dc.identifier.citationChernyshev , N 2017 ' R &D cyclicality and composition effects : a unifying approach ' CDMA Working Paper , no. 1705 .en
dc.description.abstractExisting empirical studies do not concur on whether R&D spending is procyclical or countercyclical: the former hypothesis is supported by studies of aggregate R&D spending, whereas the latter is vindicated by firm-level evidence. In this paper, we reconcile the two facts by advancing a general equilibrium framework, in which, while a single firm's R&D spending profile is countercyclical, aggregate R&D spending is procyclical owing to procyclical fluctuations in the number of R&D performers. Our findings suggest that economic crises might be beneficial for economic performance by fostering individual R&D effort. An advantage of our framework is that it brings together conflicting pieces of empirical evidence, while incorporating and building upon Schumpeter's hypothesis of countercyclical innovation.
dc.relation.ispartofseriesCDMA Working Paperen
dc.subjectEconomic cyclesen
dc.subjectOpportunity cost hypothesisen
dc.subjectProcyclicality of R&Den
dc.subjectCountercyclicality of R&Den
dc.subjectHB Economic Theoryen
dc.titleR&D cyclicality and composition effects : a unifying approachen
dc.typeWorking or discussion paperen
dc.contributor.institutionUniversity of St Andrews. School of Economics and Financeen
dc.contributor.institutionUniversity of St Andrews. Centre for Dynamic Macroeconomic Analysisen

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