Do Technology Shocks Drive Hours Up or Down? A Little Evidence From an Agnostic Procedure

Elena Pesavento () and Barbara Rossi ()

Econometrics from EconWPA

Abstract: This paper analyzes the robustness of the estimate of a positive productivity shock on hours to the presence of a possible unit root in hours. Estimations in levels or in first differences provide opposite conclusions. We rely on an agnostic procedure in which the researcher does not have to choose between a specification in levels or in first differences. We find that a positive productivity shock has a negative impact effect on hours, as in Francis and Ramey (2001), but the effect is much more short-lived, and disappears after two quarters. The effect becomes positive at business cycle frequencies, as in Christiano et al. (2003), although it is not significant.

Keywords: Technology shocks; persistence; impulse response functions; Real Business Cycle Theory (search for similar items in EconPapers)
JEL-codes: C32 C12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge
Date: 2004-11-01
Note: Type of Document - pdf; pages: 22
View list of references

Downloads: (external link)
http://129.3.20.41/eps/em/papers/0411/0411002.pdf (application/pdf)

Related works:
Working Paper: Do Technology Shocks Drive Hours Up or Down? A Little Evidence from an Agnostic Procedure (2003)
Working Paper: Do Technology Shocks Drive Hours Up or Down? A Little Evidence From an Agnostic Procedure (2003)
Journal Article: DO TECHNOLOGY SHOCKS DRIVE HOURS UP OR DOWN? A LITTLE EVIDENCE FROM AN AGNOSTIC PROCEDURE (2005)
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: http://EconPapers.repec.org/RePEc:wpa:wuwpem:0411002

Access Statistics for this paper

More papers in Econometrics from EconWPA
Series data maintained by EconWPA ().