Document Type

Working Paper

Publication Date

2017

College/Unit

Chambers College of Business and Economics

Document Number

17-04

Department/Program/Center

Economics

Abstract

Scientific research contributes to sustainable economic growth environments. Hence, policy-makers should understand how the different inputs - namely labor and capital - are related to a country's scientific output. This paper addresses this issue by estimating output elasticities for labor and capital using a panel of 31 countries in nine years. Due to the nature of scientific output, we also use spatial econometric models to take into account the spillover effects from knowledge produced as well as labor and capital. The results show that capital elasticity is closer to the labor elasticity. The results suggest a decreasing return to scale production of scientific output. The spatial model points to negative spillovers from capital expenditure and no spillovers from labor or the scientific output.

Included in

Economics Commons

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