TY  - JOUR
AU  - Bernstein,Jeffrey I.
AU  - Nadiri,M. Ishaq
TI  - Product Demand, Cost of Production, Spillovers, and the Social Rate of  Return to R&D
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3625
PY  - 1991
Y2  - February 1991
UR  - http://www.nber.org/papers/w3625
L1  - http://www.nber.org/papers/w3625.pdf
N1  - Author contact info:
Jeffrey I. Bernstein
Department of Economics
University Park Campus
Florida International University
11200 S.W. 8th Street
Miami, FL 33199
Tel: 305/348-2592
E-Mail: jeffrey.bernstein@fiu.edu

M. Ishaq Nadiri
Department of Economics
New York University
19 W. 4th Street, 6th Floor
New York, NY  10012
Tel: 212/998-8968
Fax: 212/995-4013
E-Mail: min1@nyu.edu
AB  - The purpose of this paper is to develop and estimate a model of production with endogenous technological change. Technological change arises from R&D capital accumulation decisions. These decisions respond to market and government incentives and generate R&D capital spillovers. A spillover network of senders and receivers is estimated. The network shows that each receiving industry is affected by a distinct set of R&D sources and each sending industry affects a unique set of receivers. For the receivers, spillovers generally expand product markets, lower product prices, increase production costs and input demands. For the sources, significant R&D spillovers cause the social rates of return to R&D capital to be substantially above the private returns.
ER  -