The Response of Hours to a Technology Shock: Evidence Based on Direct Measures of Technology
16 Pages Posted: 25 Jan 2004
Date Written: December 2003
We investigate what happens to hours worked after a positive shock to technology, using the aggregate technology series computed in Basu, Fernald and Kimball (1999). We conclude that hours worked rise after such a shock.
Keywords: Productivity, long-run identifying assumption, Granger-causality
JEL Classification: E24, E32, O3
Suggested Citation: Suggested Citation