부산대학교 도서관

Keywords: E41; O31; O41; endogenous growth; R&D; physical capital; inflation; money; cash-in-advance; firm size Abstract We study the real long-run effects of the structural stance of monetary policy and of inflation, in the context of a monetary growth model where R&D is complemented with physical capital accumulation. We look into the effects on a set of real macroeconomic variables that have been of interest to policymakers-the economic growth rate, real interest rate, physical investment rate, capital-to-labor ratio, R&D intensity, and velocity of money. These variables have been previously analyzed from the perspective of different, separated, strands of the theoretical and empirical literature. Additionally, we analyze the long-run relationship between inflation and both the effectiveness of real industrial-policy shocks and the market structure, assessed namely by average firm size. We present novel cross-country evidence on the empirical relationship between the latter and long-run inflation. Article Note: We thank Pedro Bento for supplying the country-level data for total entry costs as a fraction of output per worker. We thank the editor, Sanjay Chugh, and two anonymous referees for their most valuable comments and suggestions. This research was financed by the European Regional Development Fund through COMPETE 2020 Programa Operacional Competitividade e Internacionalizacao (POCI) and by Portuguese public funds through FCT (Fundacao para a Ciencia e a Tecnologia) in the framework of the project POCI-01-0145-FEDER-006890. Byline: PEDRO MAZEDA GIL, GUSTAVO IGLESIAS