Relating the Knowledge Production Function to Total Factor Productivity: An Endogenous Growth Puzzle

April 1, 2005

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Frederick L Joutz, and Yasser Abdih. Relating the Knowledge Production Function to Total Factor Productivity: An Endogenous Growth Puzzle, (USA: International Monetary Fund, 2005) accessed November 16, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The knowledge production function is central to R&D-based growth models. This paper empirically investigates the knowledge production function and intertemporal spillover effects using cointegration techniques. Time-series evidence suggests there are two long-run cointegrating relationships. The first captures a long-run knowledge production function; the second captures a long-run positive relationship between TFP and the knowledge stock. The results indicate the presence of strong intertemporal knowledge spillovers and that the long-run impact of the knowledge stock on TFP is small. This evidence is interpreted in light of existing theoretical and empirical evidence on endogenous growth.

Subject: Productivity, Spillovers, Stocks, Total factor productivity, Vector autoregression

Keywords: Growth rate, Production function, WP

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2005/074
Stock No:

WPIEA2005074
ISBN:

9781451860931
ISSN:

1018-5941

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