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Neutral Technology Shocks And The Dynamics Of Labor Input: Results From An Agnostic Identification

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  • Haroon Mumtaz
  • Francesco Zanetti

Abstract

This article studies the dynamic response of labor input to neutral technology shocks. It uses benchmark dynamic, stochastic, general equilibrium models enriched with labor market search and matching frictions and investment‐specific technological progress that enables a new, agnostic, identification scheme based on sign restrictions on a structural vector autoregression (SVAR). The estimation supports an increase of labor input in response to neutral technology shocks. This finding is robust across different perturbations of the SVAR model.

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  • Haroon Mumtaz & Francesco Zanetti, 2012. "Neutral Technology Shocks And The Dynamics Of Labor Input: Results From An Agnostic Identification," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(1), pages 235-254, February.
    • Handle: RePEc:wly:iecrev:v:53:y:2012:i:1:p:235-254
    DOI: j.1468-2354.2011.00678.x
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