Working Paper
The use of long-run restrictions for the identification of technology shocks
Abstract: We survey the recent empirical literature using long run restrictions to identify technology shocks. We provide an illustrative walkthrough of the long-run restricted vector autoregression (VAR) methodology in a bivariate framework. Additionally, we offer an alternative identification of technology shocks that can be imposed by restrictions on the long-run impulse responses. Our results from this methodology compare favorably to the empirical literature that uses structural VARs to identify technology.
Keywords: Business cycles; Technology;
Status: Published in Federal Reserve Bank of St. Louis Review, November/December 2003, 85(6), pp. 53-66
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Bibliographic Information
Provider: Federal Reserve Bank of St. Louis
Part of Series: Working Papers
Publication Date: 2003
Number: 2003-010