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Measures of Technology and the Short-Run Responses to Technology Shocks - Is the RBC-Model Consistent with Swedish Manufacturing Data?

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  • Carlsson, M.

Abstract

This paper estimates technology growth using several variants of the Hall (1988, 1990) method on data for Swedish two-digit manufacturing industries. More specifically, I first apply and evaluate two different approaches to control for varying factor utilization developed by Basu et al. (1998) and Burnside et al. (1995). Second, I propose a generalization of the latter specification. Finally, the cyclical behavior of the resulting technology measure is studied and the responses of hours and output to a technology shock are estimated using a variant of the standard VAR-approach. The main finding is that a positive technology shock has, on impact, a contractionary effect on hours and non-expansionary effect on output. This finding is inconsistent with the predictions of the standard real business cycle model.

Suggested Citation

  • Carlsson, M., 2000. "Measures of Technology and the Short-Run Responses to Technology Shocks - Is the RBC-Model Consistent with Swedish Manufacturing Data?," Papers 2000:20, Uppsala - Working Paper Series.
  • Handle: RePEc:fth:uppaal:2000:20
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    Cited by:

    1. repec:hal:journl:halshs-00115791 is not listed on IDEAS
    2. Chahnez Boudaya, 2005. "The effects of technological innovations on employment : a new explanation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00193600, HAL.
    3. Jordi Gali Garreta & Pau Rabanal, 2004. "Technology Shocks and Aggregate Fluctuations; How Well Does the RBC Model Fit Postwar U.S. Data?," IMF Working Papers 04/234, International Monetary Fund.
    4. Chahnez Boudaya, 2006. "Stage-specific technology shocks and employment : Could we reconcile with the RBC models ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00115791, HAL.
    5. Annika Alexius & Mikael Carlsson, 2005. "Measures of Technology and the Business Cycle," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 299-307, May.
    6. Marcin Kolasa, 2008. "Productivity, innovation and convergence in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(3), pages 467-501, July.
    7. Alexius, Annika & Carlsson, Mikael, 2001. "Measures of Technology and the Business Cycle: Evidence from Sweden and the U.S," Working Paper Series 174, Trade Union Institute for Economic Research.
    8. repec:hal:journl:halshs-00193600 is not listed on IDEAS

    More about this item

    Keywords

    MANUFACTURING ; GROWTH RATE ; BEHAVIOUR ; TECHNOLOGY;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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