Technology Shocks and Hours Worked: A Fractional Integration Perspective

44 Pages Posted: 10 Jan 2006

See all articles by Luis A. Gil-Alana

Luis A. Gil-Alana

University of Navarra - Department of Economics

Antonio Moreno

School of Economics and Business, University of Navarra

Date Written: December 30, 2005

Abstract

Previous research has found that the response of hours worked to a technology shock crucially depends on whether the variable hours is assumed to be an I(0) or an I(1) variable ex-ante. In this paper we employ a multivariate fractionally integrated model which allows us to determine simultaneously the order of integration of hours worked and the response of hours to a technology shock. We find that hours fall on impact in response to a positive technology shock.

Keywords: Technology shocks, hours worked, fractional integration

JEL Classification: C12, C22, C32, C51, E32

Suggested Citation

Gil-Alana, Luis A. and Moreno, Antonio, Technology Shocks and Hours Worked: A Fractional Integration Perspective (December 30, 2005). Available at SSRN: https://ssrn.com/abstract=874405 or http://dx.doi.org/10.2139/ssrn.874405

Luis A. Gil-Alana

University of Navarra - Department of Economics ( email )

Campus de Arrosadia
Pamplona, 31006
Spain

Antonio Moreno (Contact Author)

School of Economics and Business, University of Navarra ( email )

Ed. Amigos
Pamplona, Navarra 31009
Spain

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