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Technology Shocks And Hours Worked: A Fractional Integration Perspective

Listed author(s):
  • Gil-Alana, Luis Alberiko
  • Moreno, Antonio

Previous research has found that the response of hours worked to a technology shock crucially depends on whether the variable hours is assumed to be an I(0) or an I(1) variable ex-ante. In this paper we employ a multivariate fractionally integrated model which allows us to determine simultaneously the order of integration of hours worked and the response of hours to a technology shock. We find that hours fall on impact in response to a positive technology shock.

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Article provided by Cambridge University Press in its journal Macroeconomic Dynamics.

Volume (Year): 13 (2009)
Issue (Month): 05 (November)
Pages: 580-604

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Handle: RePEc:cup:macdyn:v:13:y:2009:i:05:p:580-604_08
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