Abstract:Summary
In Fabrizio and Tsolmon (Review of Economics and Statistics, 2014, 96(4), 662–675) and Barlevy (American Economic Review, 2007, 97(4), 1131–1164) it was concluded that R&D investments are procyclical. Fabrizio and Tsolmon utilized a model based on Barlevy, but it differed in some respects and allowed for more heterogeneity. However, we doubt whether their implied trends are intended. Fabrizio and Tsolmon also set missing values for R&D equal to zero, leading to unrealistic jumps in investment and its f… Show more
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