Research Cycles

61 Pages Posted: 29 Jun 2007

See all articles by Yann Bramoulle

Yann Bramoulle

Université Laval - Département d'Économique

Gilles Saint-Paul

University of Toulouse I - GREMAQ-IDEI; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

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Date Written: February 2007

Abstract

This paper studies the dynamics of fundamental research. We develop a simple model where researchers allocate their effort between improving existing fields and inventing new ones. A key assumption is that scientists derive utility from recognition from other scientists. We show that the economy can be either in a regime where new fields are constantly invented, and then converges to a steady state, or in a cyclical regime where periods of innovation alternate with periods of exploitation. We characterize the cyclical dynamics of the economy, show that indeterminacy may appear, and establish some comparative statics and welfare implications.

Keywords: Research dynamics, innovation cycles, indeterminacy

JEL Classification: C61, O39

Suggested Citation

Bramoulle, Yann and Saint-Paul, Gilles, Research Cycles (February 2007). CEPR Discussion Paper No. 6075. Available at SSRN: https://ssrn.com/abstract=997384

Yann Bramoulle

Université Laval - Département d'Économique ( email )

Ste-Foy, Quebec G1K 7P4 G1K 7P4
Canada

Gilles Saint-Paul (Contact Author)

University of Toulouse I - GREMAQ-IDEI ( email )

Manufacture des Tabacs
21 Allees de Brienne
Toulouse, 31000
France
+33 5 6112 8544 (Phone)
+33 5 6122 5563 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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