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Learning by Doing as a Propagation Mechanism

  • Yongsung Chang

    (University of Pennsylvania)

  • Joao Gomes

    (University of Pennsylvania)

  • Frank Schorfheide

    (University of Pennsylvania)

This paper suggests that skill accumulation through past work experience, or ``learning-by-doing'' (LBD), can provide an important propagation mechanism in a dynamic stochastic general equilibrium model, as the current labor supply affects future productivity. Our econometric analysis uses a Bayesian approach to combine micro-level panel data with aggregate time series. Formal model evaluation shows that the introduction of the LBD mechanism improves the model's ability to fit the dynamics of aggregate output and hours.

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Paper provided by EconWPA in its series Macroeconomics with number 0204002.

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Date of creation: 01 May 2002
Date of revision:
Handle: RePEc:wpa:wuwpma:0204002
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  18. Jesús Fernández-Villaverde & Juan F. Rubio, 2003. "Comparing Dynamic Equilibrium Economies to Data," Levine's Working Paper Archive 506439000000000309, David K. Levine.
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  24. John Geweke, 1999. "Computational Experiments and Reality," Computing in Economics and Finance 1999 401, Society for Computational Economics.
  25. David N. DeJong & Beth F. Ingram, 2001. "The Cyclical Behavior of Skill Acquisition," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(3), pages 536-561, July.
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