TY  - JOUR
AU  - Mairesse,Jacques
AU  - Siu,Alan K.
TI  - An Extended Accelerator Model of R&D and Physical Investment
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 968
PY  - 1982
Y2  - August 1982
UR  - http://www.nber.org/papers/w0968
L1  - http://www.nber.org/papers/w0968.pdf
N1  - Author contact info:
Jacques Mairesse
CREST-INSEE
15, Boulevard Gabriel PERI
92245 MALAKOFF CEDEX
FRANCE
Tel: 33-1-41-17-35-50
Fax: 33-1-41-17-76-34
E-Mail: mairesse@ensae.fr

Alan K. Siu
M1  - published as Jacques Mairesse, Alan K. Siu. "An Extended Accelerator Model of R&D and Physical Investment," in Zvi Griliches, ed., "R & D, Patents, and Productivity" University of Chicago Press (1984)

AB  - 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.
ER  -