The effects of technology shocks on hours and output: a robustness analysis
Article first published online: 8 JUN 2009
Copyright © 2009 John Wiley & Sons, Ltd.
Journal of Applied Econometrics
Volume 25, Issue 5, pages 755–773, August 2010
How to Cite
Canova, F., Lopez-Salido, D. and Michelacci, C. (2010), The effects of technology shocks on hours and output: a robustness analysis. J. Appl. Econ., 25: 755–773. doi: 10.1002/jae.1090
- Issue published online: 20 JUN 2010
- Article first published online: 8 JUN 2009
- Spanish Ministry of Education. Grant Number: SEJ-2004-21682-E
We analyze the effects of neutral and investment-specific technology shocks on hours and output. Long cycles in hours are removed in a variety of ways. Hours robustly fall in response to neutral shocks and robustly increase in response to investment-specific shocks. The percentage of the variance of hours (output) explained by neutral shocks is small (large); the opposite is true for investment-specific shocks. ‘News shocks’ are uncorrelated with the estimated technology shocks. Copyright © 2009 John Wiley & Sons, Ltd.