Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Postwar U.S. Data?

 
Author/Editor: Galí, Jordi ; Rabanal, Pau
 
Publication Date: December 01, 2004
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: Our answer: Not so well. We reached 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 comovement between output and labor input measures.
 
Series: Working Paper No. 04/234
Subject(s): Business cycles | United States | Economic models

Author's Keyword(s): Real Business Cycles | Technology Shocks | Nominal Rigidities | Real Frictions
 
English
Publication Date: December 01, 2004
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2342004 Pages: 66
Price:
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