This study presents an application of the Generalized Error Correction Model (GECM) for heterogeneous factor demands based on the quadratic cost function., Using data for 26 West German manufacturing industries over the period 1976-1995, it turns out that less general specifications such as the...

This paper empirically investigates the potential determinants of business-sector R&D intensity using a panel of OECD (countries for the period of 1975-2002 with data measured as five-year averages). Estimates using a system GMM estimator controlling for endogeneity show a high degree of...