The DOI matches its Crossref record; 3 of the 3 references it cites were found in a registry or an index.
Are Technology Improvements Contractionary?
Abstract
Yes. We construct a measure of aggregate technology change, controlling for aggregation effects, varying utilization of capital and labor, nonconstant returns, and imperfect competition. On impact, when technology improves, input use and nonresidential investment fall sharply. Output changes little. With a lag of several years, inputs and investment return to normal and output rises strongly. The standard one-sector real-business-cycle model is not consistent with this evidence. The evidence is consistent, however, with simple sticky-price models, which predict the results we find: when technology improves, inputs and investment generally fall in the short run, and output itself may also fall.
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Citations
Cites
Technical Change and the Aggregate Production Function
Solow, R. M. (1957) · The Review of Economics and Statistics · doi:10.2307/1926047 · Cited by 12,259
Discretion versus policy rules in practice
Taylor, J. B. (1993) · Carnegie-Rochester Conference Series on Public Policy · doi:10.1016/0167-2231(93)90009-l · Cited by 9,065
Tests for parameter instability and structural change with unknown change point.
Andrews, D. W. K. (1993) · Econometrica · doi:10.2307/2951764 · Cited by 4,334
Cited by
The Science of Monetary Policy: A New Keynesian Perspective
Clarida, R., Galí, J., & Gertler, M. (1999) · Journal of Economic Literature · doi:10.1257/jel.37.4.1661 · Cited by 4,916
Artificial intelligence, firm growth, and product innovation
Babina, T., Fedyk, A., He, A., & Hodson, J. (2024) · Journal of Financial Economics · doi:10.1016/j.jfineco.2023.103745 · Cited by 1,460
Really Uncertain Business Cycles
Bloom, N., Floetotto, M., Jaimovich, N., Saporta-Eksten, I., & Terry, S. J. (2018) · Econometrica · doi:10.3982/ecta10927 · Cited by 1,120
Investment shocks and business cycles
Justiniano, A., Primiceri, G. E., & Tambalotti, A. (2010) · Journal of Monetary Economics · doi:10.1016/j.jmoneco.2009.12.008 · Cited by 869
“The Decline of the U.S. Labor Share”
Elsby, M. W. L., Hobijn, B., & Şahin, A. (2013) · Brookings Papers on Economic Activity · doi:10.1353/eca.2013.0016 · Cited by 779
Metadata
- Authors
- Basu, S., Fernald, J. G., & Kimball, M. S.
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2006-11-01
- Volume
- 96
- Issue
- 5
- Pages
- 1418-1448
- ISSN
- 0002-8282 (ISSN-L)
- OpenAlex
- W2148821773
- Cited by
- 878
- References
- 3
- FWCI
- 80.85
- Type
- journal article
- Language
- en
- Open access
- closed
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- Basu, S., Fernald, J. G., & Kimball, M. S. (2006). Are Technology Improvements Contractionary? American Economic Review. https://doi.org/10.1257/aer.96.5.1418
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
