Endogenous productivity of demand‐induced R&D: evidence from pharmaceuticals.
We examine trends in the productivity of the pharmaceutical sector over the past three decades. Motivated by Ricardo's insight that productivity and rents are endogenous to demand when inputs are scarce, we examine the industry's aggregate Research and Development (R&D) production function. Using ex...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 50; no. 3; pp. 591 - 615 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Fall2019
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=137846029&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 137846029 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Fall2019 vid: 50 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 137846029 10.1111/1756-2171.12289 ppf: 591 ppct: 24 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 465KB tig: atl: Endogenous productivity of demand‐induced R&D: evidence from pharmaceuticals. aug: au: Myers, Kyle Pauly, Mark affil: Harvard University University of Pennsylvania su: Industrial productivity Returns to scale Matching theory Aggregate industry Research & development sug: subj: Industrial productivity Other specialty-line building supplies merchant wholesalers Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) Research and Development in Biotechnology Returns to scale Matching theory Aggregate industry Research & development ab: We examine trends in the productivity of the pharmaceutical sector over the past three decades. Motivated by Ricardo's insight that productivity and rents are endogenous to demand when inputs are scarce, we examine the industry's aggregate Research and Development (R&D) production function. Using exogenous demand shocks to instrument investments, we find that demand growth can explain a large portion of R&D growth. Returns to scale have been stable, whereas total factor productivity has declined significantly. Predicted rents based on our estimates and Ricardo's theory closely match the trends we observe. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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