The effects of technology shocks on hours and output: a robustness analysis |
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| Authors: | Fabio Canova David Lopez‐Salido Claudio Michelacci |
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| Affiliation: | 1. ICREA‐UPF, Barcelona, Spain;2. AMeN, Barcelona, Spain;3. CEPR, London, UK;4. Federal Reserve Board, Washington, DC;5. Cemfi, Madrid, Spain |
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| Abstract: | We analyze the effects of neutral and investment‐specific technology shocks on hours and output. Long cycles in hours are removed in a variety of ways. Hours robustly fall in response to neutral shocks and robustly increase in response to investment‐specific shocks. The percentage of the variance of hours (output) explained by neutral shocks is small (large); the opposite is true for investment‐specific shocks. ‘News shocks’ are uncorrelated with the estimated technology shocks. Copyright © 2009 John Wiley & Sons, Ltd. |
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