EconPapers    
Economics at your fingertips  
 

Revisiting the “Productivity-Hours Puzzle” in the RBC Paradigm: The Role of Investment Adjustment Costs

Alice Albonico (), Sarantis Kalyvitis () and Evi Pappa ()

No 164, Quaderni di Dipartimento from University of Pavia, Department of Economics and Quantitative Methods

Abstract: Conventional RBC models have been heavily criticized for their inability to generate the estimated negative correlations of hours and productivity in response to technology shocks ('productivity-hours puzzle'). In this paper we show that by just enhancing the standard frame- work with investment adjustment costs can resolve the 'productivity-hours puzzle'.

Keywords: technology shocks; productivity-hours puzzle; investment adjustment costs; wealth effect. (search for similar items in EconPapers)
JEL-codes: E22 E32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-dge, nep-eff and nep-mac
Date: 2012-02
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://dem-web.unipv.it/web/docs/dipeco/quad/ps/RePEc/pav/wpaper/q164.pdf (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:pav:wpaper:164

Access Statistics for this paper

More papers in Quaderni di Dipartimento from University of Pavia, Department of Economics and Quantitative Methods Contact information at EDIRC.
Bibliographic data for series maintained by Paolo Bonomolo (). This e-mail address is bad, please contact .

 
Page updated 2019-10-01
Handle: RePEc:pav:wpaper:164