Working Paper
What happens after a technology shock?
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;
Access Documents
File(s): File format is text/html http://www.federalreserve.gov/pubs/ifdp/2003/768/default.htm
File(s): File format is application/pdf http://www.federalreserve.gov/pubs/ifdp/2003/768/ifdp768.pdf
Bibliographic Information
Provider: Board of Governors of the Federal Reserve System (U.S.)
Part of Series: International Finance Discussion Papers
Publication Date: 2003
Number: 768