Huang, Chien‐Yu; Wu, Youchang; Yang, Yibai; Zheng, Zhijie - 2021
-in-advance (CIA) constrained R&D investment in both sectors. We show that a nominal interest rate increase generates two effects on … growth by shifting labor from R&D to production, whereas the latter can enhance it by shifting labor from the less productive … R&D sector to the more productive one. From the welfare perspective, we show that unless the high productivity R&D …