In this paper we estimate a Bayesian vector autoregressive model with factor stochastic volatility in the error term to assess the effects of an uncertainty shock in the Euro area. This allows us to treat macroeconomic uncertainty as a latent quantity during estimation. Only a limited number of...

The present paper studies the relationship between R&D investment and firm productivity growth by explicitly accounting for non-linearities in the R&D-productivity relationship and inter-sectoral firm heterogeneity. In order to address these issues, we employ a two step estimation approach, and...

The present paper estimates and decomposes the employment effect of innovation by R&D intensity levels. Our micro-econometric analysis is based on a large international panel data set from the EU Industrial R&D Investment Scoreboard. Employing flexible semi-parametric methods the generalised...

We provide a novel evidence about the innovation-employment nexus by decomposing it by R&D intensity in a continuous setup and relaxing the linearity assumption. Using a large international firm-level panel data set for OECD countries and employing a flexible semi-parametric method - the...