Measures of Technology and the Business Cycle

Annika Alexius () and Mikael Carlsson

The Review of Economics and Statistics, 2005, vol. 87, issue 2, 299-307

Abstract: We analyze the technology shocks identified by two different structural VAR models and compare them with classical and refined Solow residuals. The measures of technology are reasonably highly correlated. Alternative identifying restrictions in the VARs, however, have different theoretical as well as empirical consequences for the technology shocks. King et al.'s (1991) model and the classical Solow residual capture a mixture of technology and labor supply shocks, whereas the technology shocks from Galí's model and the refined Solow residuals are robust to the latter phenomenon. Moreover, we find that the two robust measures of technology are negatively correlated with hours worked. © 2005 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (33)

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/0034653053970285 link to full text (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Measures of Technology and the Business Cycle (2006)
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: https://EconPapers.repec.org/RePEc:tpr:restat:v:87:y:2005:i:2:p:299-307

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().