Technology Shocks Matter

Jonas Fisher

No 14, Econometric Society 2004 North American Winter Meetings from Econometric Society

Abstract: This paper uses the neoclassical growth model to identify the effects of technological change on the US business cycle. In the model there are two sources of technological change: neutral, which affects the production of all goods homogeneously, and investment-specific. Investment-specific shocks are the unique source of the secular trend in the real price of investment goods, while shocks to both kinds of technology are the only factors which affect labor productivity in the long run. Consistent with previous empirical work which considers only neutral shocks, the results suggest these shocks account for little, about 6 percent, of the business cycle variation in hours worked. In contrast, investment-specific shocks account for about 48 percent, a new finding which suggests that technology shocks are an important source of the business cycle

Keywords: technology shocks; business cycle (search for similar items in EconPapers)
JEL-codes: E00 E32 (search for similar items in EconPapers)
Date: 2004-08-11
New Economics Papers: this item is included in nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.chicagofed.org/publications/workingpapers/papers/wp2002-14.pdf main text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.chicagofed.org/publications/workingpapers/papers/wp2002-14.pdf [301 Moved Permanently]--> https://www.chicagofed.org/publications/workingpapers/papers/wp2002-14.pdf)

Related works:
Working Paper: Technology shocks matter (2002)
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:ecm:nawm04:14

Access Statistics for this paper

More papers in Econometric Society 2004 North American Winter Meetings from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().