000			01029pab a2200169 454500
008			180718b2007 xxu||||| |||| 00| 0 eng d
100			_aBarlevy, Gadi
245			_aOn the cyclicality of research and development
260			_c2007
300			_ap.1131-164.
362			_aSep
520			_aEconomists have recently argued recessions plays a useful role in fostering growth. Yet a major source of growth, R&D, is procyclical. This paper argues one reason for procyclical R&D is a dynamic externality inherent in R&D that makes enterpreneurs short-sighted and concentrate their innovation in books, even when it is optimal to concentrate it in recessions. Additional forces may imply that procyclical R&D is desirable, but equilibrium R&D is likely to be too procyclical, and macroeconomic shocks are likely to have overly persistent effects on output and make growth more costly than in the absence of such shocks. - Reproduced.
650			_aResearch
773			_aAmerican Economic Review
908			_aN
909			_a76540
999			_c76540 _d76540