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Labor hoarding and the business cycle

dc.contributor.author Burnside, C
dc.contributor.author Eichenbaum, M
dc.contributor.author Rebelo, S
dc.date.accessioned 2010-03-09T15:45:15Z
dc.date.issued 1993-12-01
dc.identifier.issn 0022-3808
dc.identifier.uri https://hdl.handle.net/10161/2107
dc.description.abstract This paper investigates the sensitivity of Solow residual based measures of technology shocks to labor hoarding behavior. Using a structural model of labor hoarding and the identifying restriction that innovations to technology shocks are orthogonal to innovations in government consumption, it estimates the fraction of the variability of the Solow residual that is due to technology shocks. Results support the view that a significant proportion of movements in the Solow residual are artifacts of labor hoarding behaviour. Specifically, the variance of innovations to technology is roughly 50% less than that implied by standard real business cycle models. In addition, results suggest that existing real business cycle studies substantially overstate the extent to which technology shocks account for the variability of postwar aggregate US output. -Authors
dc.format.mimetype application/pdf
dc.language.iso en_US
dc.publisher University of Chicago Press
dc.relation.ispartof Journal of Political Economy
dc.relation.isversionof 10.1086/261875
dc.title Labor hoarding and the business cycle
dc.type Journal article
dc.relation.journal The Journal of Political Economy
pubs.begin-page 245
pubs.end-page 273
pubs.issue 2
pubs.organisational-group Duke
pubs.organisational-group Economics
pubs.organisational-group Trinity College of Arts & Sciences
pubs.publication-status Published
pubs.volume 101


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