| Author(s): |
prof. Roman Horváth Ph.D.,
|
| Type: |
IES Working Papers |
| Year: |
2011 |
| Number: |
19 |
| ISSN / ISBN: |
|
| Published in: |
IES Working Papers 19/2011 |
| Publishing place: |
Prague |
| Keywords: |
research and development, economic growth, Bayesian model averaging |
| JEL codes: |
O30, O32, O10. |
| Suggested Citation: |
Horváth, R. (2011). “Research & Development and Long-Term Economic Growth: A Bayesian Model Averaging Analysis” IES Working Paper 19/2011. IES FSV. Charles University. |
| Grants: |
402/09/0965: New Approaches for monitoring and prediction of capital markets
|
| Abstract: |
We examine the effect of research and development (R&D) on long-term economic growth using the Bayesian model averaging (BMA) to deal rigorously with model uncertainty. Previous empirical studies investigated the effect of dozens of regressors on long-term growth, but they did not examine the effect of R&D due to data unavailability. We extend these studies by proposing to capture the R&D intensity by the number of Nobel prizes in science. Using our indicator, our estimates show that R&D exerts a positive effect on long-term growth with posterior inclusion probability of 0.25 using our preferred parameter and model priors. |
| Downloadable: |
WP 2011_19_Horvath
|
