Technology Shocks and Robust Sign Restrictions in a Euro Area SVAR

Gert Peersman () and Roland Straub

Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium from Ghent University, Faculty of Economics and Business Administration

Abstract: We use a model-based identification strategy to estimate the impact of technology, labor supply, monetary policy and aggregate demand shocks on hours worked and employment in the euro area. The restrictions applied in the SVAR analysis are consistent with a large class of DSGE models and are robust given a sensible range of parametrization. In contrast to most of the existing literature for the United States, our results are in line with the conventional real business cycle interpretation that hours worked rise as a result of a positive technology shock. In addition, we also find an important role for technology shocks in explaining business cycle fluctuations.

Keywords: Technology shocks; Real business cycle models; Sticky price models; Vector autoregressions, DSGE priors (search for similar items in EconPapers)
JEL-codes: E24 E32 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2005-01
New Economics Papers: this item is included in nep-dge, nep-eec and nep-mac
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Citations: View citations in EconPapers (42)

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http://wps-feb.ugent.be/Papers/wp_05_288.pdf (application/pdf)

Related works:
Journal Article: TECHNOLOGY SHOCKS AND ROBUST SIGN RESTRICTIONS IN A EURO AREA SVAR (2009)
Working Paper: Technology shocks and robust sign restrictions in a euro area SVAR (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:rug:rugwps:05/288

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