Trends in Hours, Balanced Growth, and the Role of Technology in the Business Cycle
AbstractThe present paper revisits a property embedded in most dynamic macroeconomic models: the stationarity of hours worked. First, I argue that, contrary to what is often believed, there are many reasons why hours could be nonstationary in those models, while preserving the property of balanced growth. Second, I show that the postwar evidence for most industrialized economies is clearly at odds with the assumption of stationary hours per capita. Third, I examine the implications of that evidence for the role of technology as a source of economic fluctuations in the G7 countries.
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Bibliographic InfoPaper provided by Barcelona Graduate School of Economics in its series Working Papers with number 187.
Date of creation: Oct 2004
Date of revision:
real business cycles; technology shocks; market frictions; balanced growth path; stationarity of hours;
Find related papers by JEL classification:
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
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