What happens after a technology shock?

Lawrence Christiano, Martin Eichenbaum and Robert J. Vigfusson

No 768, International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.)

Abstract: We provide empirical evidence that a positive shock to technology drives up per capita hours worked, consumption, investment, average productivity and output . 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.

Keywords: Productivity (search for similar items in EconPapers)
Date: 2003
New Economics Papers: this item is included in nep-dge
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Citations: View citations in EconPapers (237)

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Working Paper: What Happens After a Technology Shock? (2003)
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