Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations? Comment
AbstractThe neoclassical effects of permanent technology shocks on employment is re-investigated. Contrary to Jordi Gali's (1999) assertion published in this Review, I show that standard neoclassical theory is fully capable of explaining the stylized fact that positive permanent technology shocks reduce employment and that positive transitory nontechnology shocks increase labor productivity.
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Bibliographic InfoPaper provided by Cornell University, Center for Analytic Economics in its series Working Papers with number 01-19.
Date of creation: 2001
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