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What Happens After a Technology Shock? / Lawrence J. Christiano, Martin Eichenbaum, Robert Vigfusson.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Christiano, Lawrence J.
Contributor:
National Bureau of Economic Research.
Eichenbaum, Martin.
Vigfusson, Robert.
Series:
Working Paper Series (National Bureau of Economic Research) no. w9819.
NBER working paper series no. w9819
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2003.
Summary:
We provide empirical evidence that a positive shock to technology drives per capita hours worked, consumption, investment, average productivity and output up. This evidence contrasts sharply with the results reported in a large and growing literature that argues, on the basis of aggregate data, that per capita hours worked fall after a positive technology shock. We argue that the difference in results primarily reflects specification error in the way that the literature models the low-frequency component of hours worked.
Notes:
Print version record
July 2003.

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