public R&D, total-factor-productivity (TFP), and gross domestic product (GDP) for seven EU countries. We use the vector …-error-correction method. Permanent changes on mission-oriented R&D increase total-factor-productivity and GDP. On average across periods and …

factorization of innovations. Impulse-response functions aiming to estimate the response of government expenditures to the shock …

the variation in the GDP in Canada. My findings suggest that TFP news shock is the key driver of GDP in the medium run and … it creates significant positive co-movements among the aggregate variables at business cycle frequencies. Demand shock … dominates in the short run, however, its hard to pin down the exact source of the shock. The findings are robust to alternative …