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Technology Shocks and Aggregate Fluctuations

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  • Jordi Galí
  • Pau Rabanal

Abstract

Our answer: Not so well. We reached that conclusion after reviewing recent research on the role of technology as a source of economic fluctuations. The bulk of the evidence suggests a limited role for aggregate technology shocks, pointing instead to demand factors as the main force behind the strong positive comovement between output and labor input measures.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 04/234.

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Length: 67
Date of creation: 01 Dec 2004
Date of revision:
Handle: RePEc:imf:imfwpa:04/234

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Keywords: Economic models; business cycle; correlation; business cycles; equation; time series; business cycle fluctuations; predictions; statistics; standard deviation; correlations; real business cycle; standard deviations; calibration; business cycle component; source of business cycles; empirical framework; business cycle components; random walk; econometrics; general equilibrium model; parameter estimation; real business cycles; statistic; significance level; logarithms; autocorrelation; total factor productivity; empirical model; business cycle theories; stationary process; estimation method; probability; growth model; probabilities; samples; random walk process; general equilibrium models; measurement error; calibrations; sources of business cycle; predictability; observable variable; markov chain; constant mean; growth rates; standard error; growth accounting; instrumental variables; growth rate; time series analysis; conventional business cycle; prediction; real gdp; gamma distributions; stochastic models; source of business cycle; difference equation; forward-looking model; significance levels; empirical exercise; polynomials; equations; neoclassical growth model; economic growth; linear models; business cycle phenomena; sample mean; functional forms;

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References

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