This paper addresses the paradox between an increasing share of employment and a lower productivity growth of Canadian services vis-à-vis the rest of the economy in the period spanning the three decades from 1961 to 1992. It attempts to reconcile this apparent contradiction with the so-called...

We propose a new measure of total factor productivity (TFP) growth in a general equilibrium setting.It measures by how much the efficiency frontier moves outwards given the availability of primary ressources, the technology and the structure of domestic final demand. Prices are endogenous. We...

Neoclassical economists argue that competition promotes efficiency. They consider technology as given though. In the long run technological progress is an important determinant of the level of welfare and Schumpeter argued that monopoly rents help entrepreneurs to capture the gains of R&D and...

We locate the comparative advantages of Canada and Europe on the basis of their fundamentals only: endowments, technologies, and preferences. A linear program with an input-output core and an algorith for the balance of payments constraint will determine the efficient allocation of resources....

This paper measures factor productivities (and hence total factor productivity growth) directly on the basis of the fundamentals of the economy (endowments, preferences and technology), without recourse to market prices. The factor productivities are the Lagrange multipliers of a linear program...

The standard measure of productivity growth is the Solow residual. Its evaluation requires data on factor input shares or prices. Since these prices are presumed to match factor productivities, the standard procedure amounts to accepting at face value what is supposed to be measured. In this...

This paper introduces dynamics in the R&D to innovation and innovation to productivity relationships, which have mostly been estimated on cross-sectional data. It considers four nonlinear dynamic simultaneous equations models that include individual effects and idiosyncratic errors correlated...

Almost all empirical research that has attempted to assess the validity of the Porter Hypothesis has started from reduced-form models, e.g. by using single-equation models for estimating the contribution of environmental regulation (ER) to productivity. This paper addresses the Porter Hypothesis...

Using a unique panel data of Dutch innovation and financial variables we empirically investigate how financing and innovation vary across firm characteristics. The study also tries to gauge the extent of market failure due to the presence of financing frictions. Our main findings can be...

On the one hand, firms prefer to perform R&D in an open mode (letting R&D be performed extramurally or even selling their R&D services) to benefit from knowledge spillovers and complementarities between internal and external R&D. On the other hand, they may also like to perform R&D in a closed...