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Technology Shocks and Aggregate Fluctuations: How Well Does the RBS Model Fit Postwar U.S. Data?

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Jordi Gali
Pau Rabanal

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Abstract

Our answer: not so well. We reach 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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10636.

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Date of creation: Jul 2004
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Handle: RePEc:nbr:nberwo:10636

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E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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