Labor Hoarding and the Business Cycle
Craig Burnside (),
Martin Eichenbaum () and
Sergio Rebelo ()
Journal of Political Economy, 1993, vol. 101, issue 2, pages 245-73
This paper investigates the sensitivity of Solow residual based measures of technology shocks to labor-hoarding behavior. Using a structural model of labor hoarding and the identifying restriction that innovations to technology shocks are orthogonal to innovations in government consumption, the authors estimate the fraction of the variability of the Solow residual that is due to technology shocks. Their results support the view that a significant proportion of movements in the Solow residual are artifa cts of labor-hoarding behavior. Specifically, the authors estimate that the variance of innovations to technology is roughly 50 percent less than that implied by standard real business cycle models. Copyright 1993 by University of Chicago Press.
References: Add references at CitEc
Citations View citations in EconPapers (222) Track citations by RSS feed
Downloads: (external link)
http://dx.doi.org/10.1086/261875 full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
Working Paper: Labor Hoarding and the Business Cycle (1990)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:ucp:jpolec:v:101:y:1993:i:2:p:245-73
Access Statistics for this article
Journal of Political Economy is currently edited by April
More articles in Journal of Political Economy from University of Chicago Press
Series data maintained by Journals Division ().