Endogenous fluctuations with procyclical R&D

Shunsuke Shinagawa*

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    5 Citations (Scopus)


    The literature on endogenous growth cycles predicts the countercyclical allocation of resources to R&D. However, this prediction is not supported by empirical studies. This study considers the R&D-based growth model with endogenous fluctuations introducing population growth and a negative externality that affects the productivity of R&D. We show that this simple modification makes R&D investment procyclical along sustained business cycles using both an overlapping generation framework and an infinitely-lived agent framework.

    Original languageEnglish
    Pages (from-to)274-280
    Number of pages7
    JournalEconomic Modelling
    Issue number1
    Publication statusPublished - 2013 Jan


    • Cyclical properties of R&D expenditure
    • Endogenous fluctuations
    • R&D-based growth model
    • Semi-endogenous growth

    ASJC Scopus subject areas

    • Economics and Econometrics


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