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The dynamics of hours worked and technology

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  • Cristiano Cantore

    ()
    (University of Surrey)

  • Filippo Ferroni

    ()
    (Banque de France, University of Surrey)

  • Miguel A. León-Ledesma

    ()
    (University of Kent)

Abstract

We study the relationship between hours worked and technology during the postwar period in the US. We show that the responses of hours to technological improvements have increased over time, and that the patterns captured by the SVAR are consistent with those obtained from an RBC model with a less than unitary elasticity of substitution between capital and labor. Data supports the hypothesis that the observed changes in the response of hours to a technology shock are attributable to changes in the magnitude of the degree of capital-labor substitution. We argue that the observed time-variation in can arise from changes in the structural composition of sectors (or factors) in a heterogeneous inputs production function or from biases in technological change

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Bibliographic Info

Paper provided by Banco de Espa�a in its series Banco de Espa�a Working Papers with number 1238.

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Length: 33 pages
Date of creation: Nov 2012
Date of revision:
Handle: RePEc:bde:wpaper:1238

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Keywords: Real Business Cycles models; Constant Elasticity of Substitution production function; Hours worked; technology shocks;

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References

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Citations

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Cited by:
  1. Cristiano Cantore & Paul Levine & Joseph Pearlman & Bo Yang, 2014. "CES Technology and Business Cycle Fluctuations," School of Economics Discussion Papers, School of Economics, University of Surrey 0414, School of Economics, University of Surrey.
  2. Cristiano Cantore & Paul Levine & Giovanni Melina, 2013. "A Fiscal Stimulus and Jobless Recovery," IMF Working Papers 13/17, International Monetary Fund.
  3. Cristiano Cantore & Filippo Ferroni & Miguel A. León-Ledesma, 2012. "The dynamics of hours worked and technology," Banco de Espa�a Working Papers, Banco de Espa�a 1238, Banco de Espa�a.
  4. Kiguchi, Takehiro & Mountford, Andrew, 2013. "The macroeconomics of immigration," MPRA Paper 45517, University Library of Munich, Germany.

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