Lin, Xiaoji - London School of Economics (LSE) - 2009
with production. In the model, technological progress is en- dogenously driven by R&D investment and is composed of two … productivity of physical investment and is embodied in new tangible capital (e.g., structures and equipment). The model breaks the … quantitatively well-documented empirical regularities: (i) the positive relation between R&D investment and the average stock returns …