Methods versus substance: measuring the effects of technology shocks on hours

Cristina Fuentes-Albero, Maxym Kryshko, José-Víctor Ríos-Rull, Raul Santaeulalia-Llopis () and Frank Schorfheide
Authors registered in the RePEc Author Service: José-Víctor Ríos-Rull

No 433, Staff Report from Federal Reserve Bank of Minneapolis

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.

Keywords: Business cycles; Technology - Economic aspects (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-bec, nep-cba, nep-dge and nep-mac
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Citations: View citations in EconPapers (5)

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http://www.minneapolisfed.org/research/SR/SR433.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)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmsr:433

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