【Macro Seminar】Lumpy R&D and the Great Twins: Great Moderation and Great Recession

  • 研討會日期 : 2024-04-09
  • 時間 : 14:30
  • 主講人 : Professor Donghai Zhang
  • 地點 : Conference Room B110
  • 主持人 : Professor Donghoon Yoo
  • 演講者簡介 : Professor Donghai Zhang received his PhD from the Universitat Pompeu Fabra in 2018. He is currently an Assistant Professor at the National University of Singapore. His research interests are Macroeconomics, Monetary Economics, Time Series Econometrics and Financial Economics.
  • 演講摘要 : We document that R&D investments are lumpy, with a heavy representation of innovative firms that either do not adjust or make a spike adjustment in R&D expenses. Moreover, the fraction of firms making significant adjustments to R&D spending is pro-cyclical. We then develop a medium-run business cycle model with heterogeneous innovative firms and fixed adjustment costs, featuring lumpy R&D. By fitting the model to the data, we uncover the ‘Great Twins’: the Great Recession is partly caused by the preceding Great Moderation. We present micro- and macro-level evidence that supports the Great Twins hypothesis. Finally, we discuss the policy implications.