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R&D and price elasticity of demand

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dc.creator Lucke, Dorothea
dc.creator Schröder, Philipp J. H.
dc.creator Schumacher, Dieter
dc.date 2004
dc.date.accessioned 2013-10-16T06:58:34Z
dc.date.available 2013-10-16T06:58:34Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18166
dc.identifier ppn:390620351
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18166
dc.description This note explores the relationship between the price elasticity of demand and the R&D intensity of the product. We introduce the concept of R&D intensity into a standard Dixit-Stiglitz/Krugman-type setting. R&D activity is treated as a fixed cost of production. Within this framework, sectors with a higher R&D intensity show a lower price elasticity of demand. This proposition is confirmed by an empirical investigation of export demand for manufactured goods from major industrialised countries. Consequently, real exchange rate changes have an impact on the commodity structure of exports.
dc.language eng
dc.publisher Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
dc.relation DIW-Diskussionspapiere 430
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject D40
dc.subject F14
dc.subject F12
dc.subject ddc:330
dc.subject R&D intensity
dc.subject price elasticity
dc.subject exports
dc.subject Produkt
dc.subject Forschung
dc.subject Faktorintensität
dc.subject Preiselastizität
dc.subject Nachfrage
dc.subject Export
dc.subject Schätzung
dc.subject Theorie
dc.subject G7-Staaten
dc.title R&D and price elasticity of demand
dc.type doc-type:workingPaper


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