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horizontal and vertical innovation match financial data well due to countercyclical dividends which are either procyclical or … acyclical in US data. Countercyclical dividends redistribute income from consumption towards investment in innovation improving … growth prospects which are reflected in asset prices. In the horizontal innovation model of Kung and Schmid (2015 …
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, incumbents. With these models at hand, we provide new insights on the interplay of innovation dynamics and fiscal policy. …
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enables the model to replicate the empirically rather moderate correlation between the R&D innovation probabilities of …
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This paper studies a two-country production economy with complete and frictionless financial markets and international trade of final goods in which competition in R&D leads to endogenous new firm creation and economic growth. Current monopolists ("incumbents") and potential new firms...
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explicity on innovation as an economic activity with different economic causes and effects, this article tries to open the door …
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accumulation. Human capital is an important source of sustained growth. By focusing explicity on innovation as an economic activity …
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