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On the robust effects of technology shocks on hours worked and output

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  • Fabio Canova

    ()

  • David López-Salido
  • Claudio Michelacci

Abstract

We analyze the effects of neutral and investment-specific technology shocks on hours and output. Long cycles in hours are captured in a variety of ways. Hours robustly fall in response to neutral shocks and robustly increase in response to investment specific shocks. The percentage of the variance of hours (output) explained by neutral shocks is small (large); the opposite is true for investment specific shocks. ‘News shocks’ are uncorrelated with the estimated technology shocks.

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File URL: http://www.econ.upf.edu/docs/papers/downloads/1013.pdf
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Bibliographic Info

Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 1013.

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Date of creation: Nov 2006
Date of revision: Feb 2008
Handle: RePEc:upf:upfgen:1013

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Web page: http://www.econ.upf.edu/

Related research

Keywords: Technology disturbances; structural VARs; low frequency movements; news shocks;

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Citations

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Cited by:
  1. Fabio Canova & David Lopez-Salido & Claudio Michelacci, 2009. "The ins and outs of unemployment: An analysis conditional on technology shocks," Economics Working Papers 1213, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2012.
  2. Fabio Canova & David Lopez-Salido & Claudio Michelacci, 2006. "Schumpeterian technology shocks," Economics Working Papers 1012, Department of Economics and Business, Universitat Pompeu Fabra, revised Nov 2007.
  3. Justiniano, Alejandro & Primiceri, Giorgio E. & Tambalotti, Andrea, 2008. "Investment Shocks and Business Cycles," CEPR Discussion Papers 6739, C.E.P.R. Discussion Papers.
  4. Fabio Canova & David López-Salido & Claudio Michelacci, 2007. "The labor market effects of technology shocks," Banco de Espa�a Working Papers 0719, Banco de Espa�a.
  5. Almut Balleer, 2012. "New evidence, old puzzles: Technology shocks and labor market dynamics," Quantitative Economics, Econometric Society, vol. 3(3), pages 363-392, November.
  6. Balleer, Almut & Enders, Zeno, 2013. "Expansionary and Contractionary Technology Improvements," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80046, Verein für Socialpolitik / German Economic Association.
  7. Zeno Enders & Almut Balleer, 2012. "Expansionary and Contractionary Technology Shocks," 2012 Meeting Papers 812, Society for Economic Dynamics.

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