Irreversibility of R&D investment and the adverse effect of uncertainty: Evidence from the OECD countries

Economics Letters

Volumn 71, Issue 2, 2001, Pages 287-291

  Goel, Rajeev K ^a   Ram, Rati ^a  

^a ILLINOIS STATE UNIVERSITY   (United States)

Author keywords

Irreversibility of investment; O5; R D outlays; Uncertainty

Indexed keywords

EID: 0042367672     PISSN: 01651765     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0165-1765(01)00372-X     Document Type: Article

References (18)

1. Abel A.B., Dixit A.K., Eberly J.C., Pindyck R.S. Options, the value of capital, and investment. Quarterly Journal of Economics. 111:1996;753-777.
2. Bell G.K., Campa J.M. Irreversible investments and volatile markets: a study of the chemical processing industry. Review of Economics and Statistics. 79:1997;79-87.
3. Dixit A.K., Pindyck R.S. Investment Under Uncertainty. 1994;Princeton University Press, Princeton, NJ.
4. Episcopos A. Evidence on the relationship between uncertainty and irreversible investment. Quarterly Review of Economics and Finance. 35:1995;41-52.
5. Favero C.A., Pesaran M.H., Sharma S. A duration model of irreversible oil investment: theory and empirical evidence. Journal of Applied Econometrics. 9:1994;S95-S112.
6. Goel R.K., Ram R. Variations in the effect of uncertainty on different types of investment: an empirical investigation. Australian Economic Papers. 38:1999;481-492.
7. Griliches Z. Issues in assessing the contribution of research and development to productivity growth. Bell Journal of Economics. 10:1979;92-116.
8. International Financial Statistics Yearbook 1986. 1986;International Monetary Fund, Washington, DC.
9. International Financial Statistics Yearbook 1995. 1995;International Monetary Fund, Washington, DC.
10. Kamien M.I., Schwartz N.L. A generalized hazard rate. Economics Letters. 5:1980;245-249.
11. The Competitive Strength of U.s. Industrial Science and Technology: Strategic Issues. 1992;National Science Foundation, Washington, DC.
12. 1964-1981. National Accounts, Detailed Tables. Vol. II:1983;OECD, Paris.
13. 1980-1992. National Accounts, Detailed Tables. Vol. II:1994;OECD, Paris.
14. Main Science and Technology Indicators. 1998;OECD, Paris.
15. Pindyck R.S. Irreversibility, uncertainty, and investment. Journal of Economic Literature. 29:1991;1110-1148.
16. Pindyck R.S., Solimano A. Economic instability and aggregate investment. Blanchard O.J., Fischer S. NBER Macroeconomics Annual 1993. 1993;259-317 MIT Press, Cambridge, MA.
17. Ramsey J.B., Schmidt P. Some further results on the use of OLS and BLUS residuals in specification error tests. Journal of the American Statistical Association. 71:1976;389-390.
18. Reinganum J.F. The timing of innovation: research, development, and diffusion. Schmalensee R., Willig R.D. Handbook of Industrial Organization. Vol. 1:1989;849-908 North-Holland, Amsterdam.