Understanding the Effects of Technology Shocks
AbstractThe research led by Gali (AER 1999) and Basu, Fernald, and Kimball (AER 2006) raises two important questions regarding the validity of the RBC theory: (i) How important are technology shocks in explaining the business cycle? (ii) Do impulse responses to technology shocks found in the data reject the assumption of flexible prices? Using an RBC model, this paper argues that the conditional impulse responses of the U.S. economy to technology shocks are not grounds to reject the notion that technology shocks are the main driving force of the business cycle and the assumption of flexible prices, in contrast to the conclusions reached by the literature. (Copyright: Elsevier)
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.
Volume (Year): 14 (2011)
Issue (Month): 4 (October)
Contact details of provider:
Postal: Review of Economic Dynamics Academic Press Editorial Office 525 "B" Street, Suite 1900 San Diego, CA 92101
Web page: http://www.EconomicDynamics.org/review.htm
More information through EDIRC
Other versions of this item:
- Pengfei Wang & Yi Wen, 2010. "Code and data files for "Understanding the Effects of Technology Shocks"," Computer Codes 09-148, Review of Economic Dynamics.
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert J. Vigfusson, 2004. "The delayed response to a technology shock: a flexible price explanation," International Finance Discussion Papers 810, Board of Governors of the Federal Reserve System (U.S.).
- Canova, Fabio & Lopez-Salido, Jose David & Michelacci, Claudio, 2007.
"The Labour Market Effects of Technology Shocks,"
CEPR Discussion Papers
6365, C.E.P.R. Discussion Papers.
- Jordi GalÃ & Pau Rabanal, 2004. "Technology Shocks and Aggregate Fluctuations," IMF Working Papers 04/234, International Monetary Fund.
- Lawrence J. Christiano & Martin Eichenbaum & Robert Vigfusson, 2006.
"Assessing Structural VARs,"
NBER Working Papers
12353, National Bureau of Economic Research, Inc.
- Galí, Jordi & Rabanal, Pau, 2004. "Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Post-War US Data?," CEPR Discussion Papers 4522, C.E.P.R. Discussion Papers.
- Jonas D. M. Fisher, 2002.
"Technology shocks matter,"
Working Paper Series
WP-02-14, Federal Reserve Bank of Chicago.
- Jonas Fisher, 2004. "Technology Shocks Matter," Econometric Society 2004 North American Winter Meetings 14, Econometric Society.
- Jouini, Nizar & Rebei, Nooman, 2014.
"The welfare implications of services liberalization in a developing country,"
Journal of Development Economics,
Elsevier, vol. 106(C), pages 1-14.
- Nizar Jouini & Nooman Rebei, 2013. "The Welfare Implications of Services Liberalization in a Developing Country," IMF Working Papers 13/110, International Monetary Fund.
- Hyeon-seung Huh & David Kim, 2013. "Do SVAR Models Justify Discarding the Technology Shock-Driven Real Business Cycle Hypothesis?," Working papers 2013rwp-59, Yonsei University, Yonsei Economics Research Institute.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann).
If references are entirely missing, you can add them using this form.