By contrasting endogenous growth models with facts, one is frequently confronted with the prediction that levels of economic variables, such as R&D expenditures, imply lasting effects on the growth rate of an economy. As stylized facts show, the research intensity in most advanced countries has...

This paper estimates the parameters of a stochastic growth model with asset market and contrasts the model's moments with moments of the actual data. We solve the model through log-linearization along the line of Campbell (1994) [Journal of Monetary Economics 33(3), 463] and estimate the model...