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Technology Shocks And Hours Worked: A Fractional Integration Perspective

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  • Gil-Alana, Luis Alberiko
  • Moreno, Antonio

Abstract

Previous research has found that the response of hours worked to a technology shock crucially depends on whether the variable hours is assumed to be an I(0) or an I(1) variable ex-ante. In this paper we employ a multivariate fractionally integrated model which allows us to determine simultaneously the order of integration of hours worked and the response of hours to a technology shock. We find that hours fall on impact in response to a positive technology shock.

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Bibliographic Info

Article provided by Cambridge University Press in its journal Macroeconomic Dynamics.

Volume (Year): 13 (2009)
Issue (Month): 05 (November)
Pages: 580-604

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Handle: RePEc:cup:macdyn:v:13:y:2009:i:05:p:580-604_08

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Citations

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Cited by:
  1. Nadia Ayari & Szabolcs Blazsek & Pedro Mendi, 2009. "Renewable Energy Innovations in Europe: A Dynamic Panel Data Approach," Faculty Working Papers 11/09, School of Economics and Business Administration, University of Navarra.
  2. Caporale, Guglielmo Maria & Gil-Alana, Luis A., 2014. "Persistence and cycles in US hours worked," Economic Modelling, Elsevier, vol. 38(C), pages 504-511.
  3. Alvaro Escribano & Szabolcs Blazsek, 2012. "Patents, secret innovations and firm's rate of return : differential effects of the innovation leader," Economics Working Papers we1202, Universidad Carlos III, Departamento de Economía.
  4. Luis Gil-Alana & Antonio Moreno, 2012. "Fractional integration and structural breaks in U.S. macro dynamics," Empirical Economics, Springer, vol. 43(1), pages 427-446, August.
  5. Lovcha, Yuliya & Pérez Laborda, Àlex, 2013. "Hours worked - Productivity puzzle: identification in fractional integration settings," Working Papers 2072/211796, Universitat Rovira i Virgili, Department of Economics.
  6. Ibrahim ARISOY, 2012. "Structural breaks and nonlinearities in hours worked: are they really nonstationary?," Economics Bulletin, AccessEcon, vol. 32(3), pages 2670-2677.
  7. Tschernig, Rolf & Weber, Enzo & Weigand, Roland, 2013. "Long- versus medium-run identification in fractionally integrated VAR models," University of Regensburg Working Papers in Business, Economics and Management Information Systems 476, University of Regensburg, Department of Economics.

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