Economic Growth and Risk in R&D

15 Pages Posted: 21 Sep 2019

See all articles by Minxian Yang

Minxian Yang

UNSW Australia Business School, School of Economics

Date Written: July 1995

Abstract

A growth model, in which economic growth is driven by R&D activities, is constructed to analyse issues related to the riskiness of R&D. It is shown that when R&D are risky strongly-risk-averse behaviour may suffocate the potential growth of a closed economy if risk-sharing arrangements are missing. In this model economy, risk-taking behaviour and the risk-sharing arrangements are identified as important factors that are responsible for different experiences of growth.

Keywords: Economic growth, R&D, Riskiness

JEL Classification: O4, O3

Suggested Citation

Yang, Minxian, Economic Growth and Risk in R&D (July 1995). UNSW Business School Research Paper Forthcoming. Available at SSRN: https://ssrn.com/abstract=3453077 or http://dx.doi.org/10.2139/ssrn.3453077

Minxian Yang (Contact Author)

UNSW Australia Business School, School of Economics ( email )

School of Economics
The University of New South Wales
Sydney, NSW NSW 2052
Australia
93853353 (Phone)

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