What Happens After a Technology Shock?

Lawrence Christiano (), Martin Eichenbaum () and Robert John Vigfusson ()

No 9819, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We provide empirical evidence that a positive shock to technology drives per capita hours worked, consumption, investment, average productivity and output up. This evidence contrasts sharply with the results reported in a large and growing literature that argues, on the basis of aggregate data, that per capita hours worked fall after a positive technology shock. We argue that the difference in results primarily reflects specification error in the way that the literature models the low-frequency component of hours worked.

JEL-codes: C1 E3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-sea
Date: 2003-07
Note: EFG LS
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Working Paper: What happens after a technology shock? (2003)
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