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| Esposti, Roberto; Pierani, Pierpaolo. |
| Public R&D stock is considered as quasi-fixed input in a variable cost function. Its shadow price allows to measure the long run optimal level thus explicitly assessing the hypothesis of under (over) investment. Two alternative R&D prices are defined depending on whether the social or private (farmers) view prevails. The results under these alternatives provide evidence on the hypothesis that free-riding on public R&D explain overinvestment. The application to the Italian agriculture (1960-1995) suggests overinvestment in public research since the late seventies with a significant difference between the social and private optimal R&D, the former being much closer to the observed level. |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Research and Development/Tech Change/Emerging Technologies. |
| Ano: 2003 |
URL: http://purl.umn.edu/25876 |
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| Esposti, Roberto; Pierani, Pierpaolo. |
| The public R&D capital stock is introduced as a quasi-fixed input in a variable cost function. The relative shadow price allows the correct measurement of the equilibrium levels of quasi-fixed inputs thus explicitly assessing the hypothesis of public R&D under (over) investment. By introducing an appropriate R&D price in the long-run equilibrium, the model can also provide empirical evidence on the rationale driving public R&D investment and on the hypothesis that free-riding on public R&D can explain overinvestment. Moreover, the model allows a formal testing of the induced innovation hypothesis and a more accurate calculation of both internal rate of return to R&D and residual exogenous productivity growth. The empirical... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Public Economics. |
| Ano: 2002 |
URL: http://purl.umn.edu/24974 |
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