| Title: |
RELATING THE KNOWLEDGE PRODUCTION FUNCTION TO TOTAL FACTOR PRODUCTIVITY: AN ENDOGENOUS GROWTH PUZZLE |
| Authors: |
Jel Codes O; Endogenous Growth; Knowledge Spillovers; Yasser Abdih; Frederick L. Joutz |
| Contributors: |
The Pennsylvania State University CiteSeerX Archives |
| Source: |
http://www.cass.city.ac.uk/conferences/oxmetrics2004/PapersFinalWebPage/Joutz.pdf. |
| Publication Year: |
2004 |
| Collection: |
CiteSeerX |
| Description: |
A central issue of endogenous growth theory has been the emergence of R&D based models of economic growth. These model(s) focus on the knowledge production function that describes the evolution of knowledge creation. The specification of the functions and the observable data has created debates over balanced growth paths and intertemporal knowledge spillovers. We link knowledge to economic growth by including total factor productivity in a system. Patent statistics are used to construct knowledge flows and stocks. The rate of production of new knowledge depends positively on the amount of labor engaged in R&D and the existing stock of knowledge available to these researchers. Time series evidence suggests that there are two long run cointegrating relationships. The first captures a long run knowledge production function; the second captures a long run positive relationship between TFP and the stock of knowledge (patents). The results indicate the presence of strong intertemporal knowledge spillovers. The long run elasticity of new knowledge creation with respect to the existing stock of knowledge is at least as large as unity. Second, the paper finds that the long run impact of the knowledge (patent) stock on TFP is small: doubling the stock of knowledge is estimated to increase TFP by only 10 % in the long run. The paper provides evidence that the rate of diffusion of new knowledge into the productive sector of the U.S. economy has been slow over the past 20 years. This observation is consistent with the weak relationship found between the stock of knowledge and TFP. The paper interprets this evidence in light of the debate surrounding existing R&D-based growth models. |
| Document Type: |
text |
| File Description: |
application/pdf |
| Language: |
English |
| Relation: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.197.8003; http://www.cass.city.ac.uk/conferences/oxmetrics2004/PapersFinalWebPage/Joutz.pdf |
| Availability: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.197.8003; http://www.cass.city.ac.uk/conferences/oxmetrics2004/PapersFinalWebPage/Joutz.pdf |
| Rights: |
Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: |
edsbas.B7CEE446 |
| Database: |
BASE |