We develop a unified theory of endogenous business cycles in which expansions are neoclassical growth periods driven by productivity improvements and capital accumulation, while downturns are the result of Keynesian contractions in aggregate demand below potential output. Recessions allow...

Germany has had an extremely low growth performance since 1995. The paper looks at the long-run reasons for this loss of economic dynamics besides German unification: These include leaving labor idle, a declining share of investment in GDP, a weaker innovative activity, an ineffective system for...

Phenomena such as the Great Moderation have increased the attention of macro-economists towards models where shock processes are not (log-)normal. This paper studies a class of discrete-time rational expectations models where the variance of exogenous innovations is subject to stochastic regime...

One of the structural problems in Latin-American has been the lower innovative capacity and lower generation of economically exploitable knowledge. This phenomenon has been produced by the absence of government’s incentives and strategies in order to be competitive inside the Knowledge Based...

Une conférence internationale, organisée en juillet 2007 par la Banque de France et le CEPR, a été l’occasion de présentation et discussion de plusieurs analyses récentes portant sur les liens entre innovation, productivité et croissance.

The aim of this paper is to study empirically the patenting propensity at the European regional level. To do that we use the OECD-REGPAT dataset, that includes patent applications made by European inventors and applicants to EPO in the time-span 1978-2011. Explanatory variables on R&D and human...

Abstract: The main objective of this paper is to establish a formal relationship between innovation and performance using Colombian firm-level data. We find that, as predicted by the literature, the production of goods and services new to the firm and to the domestic market enhances firms´...

This paper contributes to the analysis of the effects of demand structure on longterm growth. Introducing non-homothetic preferences in an otherwise standard quality- model, we first show that disparities in purchasing power generate positive R&D investment by quality leaders. This result is...

This paper focuses on the innovation gap between countries in the Euro-Mediterranean (Euromed) area and its implications in terms of growth and convergence. Using a large set of innovation variables, we estimate a growth model à la Barro which shows that differences in innovation between...

We present an analytical solution to the lab-equipment R&D growth model with an exogenous rate of imitation and apply it to study the optimal level of intellectual property rights (IPR) protection. This has already been studied in Kwan and Lai (2003); however, a mistake in writing out the...