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Testing R&D‐Based Endogenous Growth Models

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  • Peter K. Kruse‐Andersen

Abstract

This study examines US productivity growth through the lens of R&D‐based growth models. A general R&D‐based model, nesting different model varieties, is developed. These varieties are tested using a novel cointegrating relationship and US data for the period 1953–2018. The results provide evidence against the widely used fully endogenous variety and support for other varieties including the semi‐endogenous variety. Further, the results are systematically consistent with the presence of fishing‐out effects in knowledge production, implying that productivity‐enhancing innovations become increasingly harder to achieve as technologies become more advanced. Forecasts suggest that the US productivity growth slowdown continues over the coming decades.

Suggested Citation

  • Peter K. Kruse‐Andersen, 2023. "Testing R&D‐Based Endogenous Growth Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 85(5), pages 1083-1110, October.
    • Handle: RePEc:bla:obuest:v:85:y:2023:i:5:p:1083-1110
    DOI: 10.1111/obes.12552
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    References listed on IDEAS

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