EconPapers    
Economics at your fingertips  
 

Persistence

Yongsung Chang (), João Gomes () and Frank Schorfheide ()

No 1632, Econometric Society World Congress 2000 Contributed Papers from Econometric Society

Abstract: To generate persistence we augment the standard real business cycle (RBC) model with a ``learning by doing'' (LBD) mechanism, where current labor supply affects workers' future labor productivity. Our econometric analysis shows that the LBD model fits aggregate data much better than the standard RBC model. We calculate posterior odds for the structural models and formally show that the LBD model more closely mimics the autocorrelation and impulse response patterns that we found in a bivariate VAR analysis.

Date: 2000-08-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://fmwww.bc.edu/RePEc/es2000/1632.pdf main text (application/pdf)

Related works:
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:wc2000:1632

Access Statistics for this paper

More papers in Econometric Society World Congress 2000 Contributed Papers from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().

 
Page updated 2019-08-20
Handle: RePEc:ecm:wc2000:1632