This paper proposes a framework which integrates convex costs of adjustment and expectations formation in the determination of investment decisions in R&D at the firm level. The model is based on cost minimization subject to the firm's expectations of the stream of output and the price of R&D,...

The objectives of this preliminary study are threefold. The first is to analyze empirically the production structure of the Bell System at the aggregate level. Particular attention is focused on the pattern of substitution among the factor inputs and the degree to which the aggregate production...

This paper presents estimates of the productivity and factor bias effects of interindustry Ramp;D spillovers for five high-tech industries. Each industry is distinguished as a separate spillover source. The industries are each affected by Ramp;D spillovers and are themselves spillover sources....

In this paper we analyze the evidence from a large number of studies on three specific questions pertaining to R&D investment: (1) Are there diminishing returns to inventive activities? (2) What is the relationship between R&D and productivity and what are the magnitudes of the returns to a...

In this paper we look at some empiricel evidence of and theoretical rationale for price inflexibility in the face of a decrease in short run demand in the Western-type industrialized economies. The empirical evidence suggests that price sluggishness is pervasive but varies across markets,...