NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

An Extended Accelerator Model of R&D and Physical Investment

Jacques Mairesse, Alan K. Siu

NBER Working Paper No. 968
Issued in August 1982
NBER Program(s):   PR

Using a multivariate autoregressive framework, we have found a simple causal structure for the variables of interest q, s, r, and i, which is consistent with our data. As expected from the stock market efficiency hypothesis, q, the stock market one period holding rate of return, is exogenous relative to the other three variables (or Granger causes them). As postulated in the traditional accelerator model of investment, the rate of growth of sales, s, can be also treated as exogenous to the rates of growth of R&D and physical. investment, r and i. Moreover, no strong feed- back interaction is detected between the last two (r and i). Within the simple structure of the extended accelerator model, the substantive conclusion is that R&D and physical investment react very similarly to the growth of the sales and to movements in q; the response of R&D is, however, more stable or less irregular than that of physical investment. Expected demand and expected profitability thus both appear to be important determinants for R&D expenditures and physical investment.

download in pdf format
   (395 K)

email paper

This paper is available as PDF (395 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w0968

Published:

Users who downloaded this paper also downloaded these:
Jorgenson The Theory of Investment Behavior
Mairesse and Siu An Extended Accelerator Model of R&D and Physical Investment
Ausink and Wise The Military Pension, Compensation, and Retirement of U.S. Air Force Pilots
Lach and Rob w4060 R&D, Investment and Industry Dynamics
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us