Chen, Yanyou; Xu, Daniel Yi - National Bureau of Economic Research - 2022
dynamic setting with knowledge spillovers. We use a simulated method of moments estimator and the novel approximation method … of Weintraub, Benkard and Van Roy (2008) to estimate the R&D cost, magnitude of knowledge spillovers, adjustment costs of … physical investment, and plant scrap value distribution. Knowledge spillovers are essential to explaining the firm …