Demand estimates are essential for addressing a wide range of positive and normative questions in economics that are known to depend on the shape-and notably the curvature-of the true demand functions. The existing frontier approaches, while allowing flexible substitution patterns, typically...

This study presents a model in which firms invest in research and development (R&D) to generate innovations that increase their underlying profitability and invest in physical capital to produce output. Estimating the model using a method of moments approach reveals that R&D expenditures...

We examine the “home bias” of knowledge spillovers (the idea that knowledge spreads more slowly over international boundaries than within them) as mea- sured by the speed of patent citations. We present econometric evidence that the geographical localization of knowledge spillovers has...