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What Happens After a Technology Shock?
Open accessAbstract
We provide empirical evidence that a positive shock to technology drives per capita hours worked, consumption, investment, average productivity and output up.This evidence contrasts sharply with the results reported in a large and growing literature that argues, on the basis of aggregate data, that per capita hours worked fall after a positive technology shock.We argue that the difference in results primarily reflects specification error in the way that the literature models the low-frequency component of hours worked.
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Cites
Initial conditions and moment restrictions in dynamic panel data models
Blundell, R., & Bond, S. (1998) · Journal of Econometrics · doi:10.1016/s0304-4076(98)00009-8 · Cited by 22,571
Testing the null hypothesis of stationarity against the alternative of a unit root
Kwiatkowski, D., Phillips, P. C. B., Schmidt, P., & Shin, Y. (1992) · Journal of Econometrics · doi:10.1016/0304-4076(92)90104-y · Cited by 12,633
Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy
Christiano, L. J., Eichenbaum, M., & Evans, C. L. (2005) · Journal of Political Economy · doi:10.1086/426038 · Cited by 6,238
Self-citationInstrumental Variables Regression with Weak Instruments
Staiger, D., & Stock, J. (1994) · doi:10.3386/t0151 · Cited by 5,302
Cited by
Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach
Smets, F., & Wouters, R. (2007) · SSRN Electronic Journal · doi:10.2139/ssrn.1687574 · Cited by 1,506
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
What does a technology shock do? A VAR analysis with model-based sign restrictions
Dedola, L., & Neri, S. (2007) · Journal of Monetary Economics · doi:10.1016/j.jmoneco.2005.06.006 · Cited by 396
Does Information Help Recovering Structural Shocks from past Observations?
Giannone, D., & Reichlin, L. (2006) · Journal of the European Economic Association · doi:10.1162/jeea.2006.4.2-3.455 · Cited by 133
Metadata
- Authors
- Christiano, L., Eichenbaum, M., & Vigfusson, R.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 2003-07
- OpenAlex
- W2117360332
- Cited by
- 226
- References
- 4
- Type
- report
- Language
- en
- Open access
- green
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