Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Post-War US Data?
Universitat Pompeu Fabra - Centre de Recerca en Economia Internacional (CREI); Massachusetts Institute of Technology (MIT) - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)
CEPR Discussion Paper No. 4522
Our answer: not so well. We reach that conclusion after reviewing recent research on the role of technology as a source of economic fluctuations. The bulk of the evidence suggests a limited role for aggregate technology shocks, pointing instead to demand factors as the main force behind the strong positive co-movement between output and labor input measures.
Number of Pages in PDF File: 84
Keywords: Real business cycles, technology shocks, nominal rigidities, real frictions
JEL Classification: E32working papers series
Date posted: September 21, 2004
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