Methods versus Substance: Measuring the Effects of Technology Shocks on Hours

José-Víctor Ríos-Rull, Frank Schorfheide, Cristina Fuentes-Albero, Maxym Kryshko and Raul Santaeulalia-Llopis ()

No 15375, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper, we employ both calibration and modern (Bayesian) estimation methods to assess the role of neutral and investment-specific technology shocks in generating fluctuations in hours. Using a neoclassical stochastic growth model, we show how answers are shaped by the identification strategies and not by the statistical approaches. The crucial parameter is the labor supply elasticity. Both a calibration procedure that uses modern assessments of the Frisch elasticity and the estimation procedures result in technology shocks accounting for 2% to 9% of the variation in hours worked in the data. We infer that we should be talking more about identification and less about the choice of particular quantitative approaches.

JEL-codes: C1 C8 E3 (search for similar items in EconPapers)
Date: 2009-09
New Economics Papers: this item is included in nep-bec and nep-dge
Note: EFG ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published as \Methods versus Substance: Measuring the E ects of Technology Shocks on Hours" joint with Frank Schorfheide, Cristina Fuentes-Albero, Raul Santaeulalia-Llopis and Maxym Kryshko. Journal of Monetary Economics Vol. 59, Issue 8, December 2012, pp. 826-46.

Downloads: (external link)
http://www.nber.org/papers/w15375.pdf (application/pdf)

Related works:
Working Paper: Methods versus Substance: Measuring the Effects of Technology Shocks on Hours (2009)
Working Paper: Methods versus substance: measuring the effects of technology shocks on hours (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:15375

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w15375

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().