Trends in hours, balanced growth and the role of technology in the business cycle

Jordi Galí

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: The present paper revisits a property embedded in most dynamic macroeconomic models: the stationarity of hours worked. First, I argue that, contrary to what is often believed, there are many reasons why hours could be nonstationary in those models, while preserving the property of balanced growth. Second, I show that the postwar evidence for most industrialized economies is clearly at odds with the assumption of stationary hours per capita. Third, I examine the implications of that evidence for the role of technology as a source of economic fl uctuations in the G7 countries.

Keywords: real business cycles; technology shocks; market frictions; balanced growth path; stationarity of hours (search for similar items in EconPapers)
JEL-codes: E32 (search for similar items in EconPapers)
Date: 2005-01
New Economics Papers: this item is included in nep-dge and nep-mac
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Citations: View citations in EconPapers (17)

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Related works:
Working Paper: Trends in Hours, Balanced Growth, and the Role of Technology in the Business Cycle (2015)
Journal Article: Trends in hours, balanced growth, and the role of technology in the business cycle (2005)
Working Paper: Trends in Hours, Balanced Growth and the Role of Technology in the Business Cycle (2005)
Working Paper: Trends in Hours, Balanced Growth, and the Role of Technology in the Business Cycle (2005)
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