Technology, hours and factor substitution

Peter McAdam ()

Research Bulletin, 2011, vol. 13, 8-12

Abstract: The reaction of hours worked to technology shocks represents a key distinction between real business cycle and New Keynesian explanations of the business cycle. However, with a more general production and technology framework than commonly assumed, both models can be shown to generate technology-hours correlations of either sign. The impact of technology on hours can hardly be taken as evidence in support of any particular business cycle model. JEL Classification: E32, E23, E25

Keywords: technology shocks; hours worked; factor substitution (search for similar items in EconPapers)
Date: 2011-06
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Citations: View citations in EconPapers (4)

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