On innovative activity over the business cycle: a note

Alan Collins; S. Yao

doi:10.1080/135048598354032

On innovative activity over the business cycle: a note

Alan Collins, S. Yao

Research output: Contribution to journal › Article › peer-review

Abstract

In a recent article, Geroski and Walters (Economic Journal, 105, 1995, 916-928) suggest that changes in demand Granger cause changes in innovative activity but not vice versa. This note shows that inappropriate modelling methods can lead to such conclusions which exclude the possibility of two-way causality between production and innovation. It suggests that applied economists must test data validity before any meaningful econometric analyses are conducted.

Original language	English
Pages (from-to)	785-788
Number of pages	4
Journal	Applied Economics Letters
Volume	4
Issue number	12
DOIs	https://doi.org/10.1080/135048598354032
Publication status	Published - 1998

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title = "On innovative activity over the business cycle: a note",

abstract = "In a recent article, Geroski and Walters (Economic Journal, 105, 1995, 916-928) suggest that changes in demand Granger cause changes in innovative activity but not vice versa. This note shows that inappropriate modelling methods can lead to such conclusions which exclude the possibility of two-way causality between production and innovation. It suggests that applied economists must test data validity before any meaningful econometric analyses are conducted.",

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AB - In a recent article, Geroski and Walters (Economic Journal, 105, 1995, 916-928) suggest that changes in demand Granger cause changes in innovative activity but not vice versa. This note shows that inappropriate modelling methods can lead to such conclusions which exclude the possibility of two-way causality between production and innovation. It suggests that applied economists must test data validity before any meaningful econometric analyses are conducted.

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JO - Applied Economics Letters

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On innovative activity over the business cycle: a note

Abstract

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