Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Postwar U.S. Data?
December 1, 2004
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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.
Subject: Business cycles, Economic growth, Labor, Labor productivity, Prices, Production, Sticky prices, Technology
Keywords: business cycle, business cycle fluctuation, business cycle model, Business cycles, Labor productivity, monetary policy, Nominal Rigidities, point estimate, positive correlation, production function, RBC literature, RBC model, Real Business Cycles, Real Frictions, real wage, standard deviation, Sticky prices, technology shock, Technology Shocks, time series, WP
Pages:
67
Volume:
2004
DOI:
Issue:
234
Series:
Working Paper No. 2004/234
Stock No:
WPIEA2342004
ISBN:
9781451875652
ISSN:
1018-5941
