On innovative activity over the business cycle: a note

Alan Collins, S. Yao

Research output: Contribution to journalArticlepeer-review


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 languageEnglish
Pages (from-to)785-788
Number of pages4
JournalApplied Economics Letters
Issue number12
Publication statusPublished - 1998


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