Show simple item record Burnside, C Eichenbaum, M Rebelo, S 2010-03-09T15:45:15Z 1993-12-01
dc.identifier.citation Journal of Political Economy, 1993, 101 (2), pp. 245 - 273
dc.identifier.issn 0022-3808
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.extent 245 - 273
dc.format.mimetype application/pdf
dc.language.iso en_US
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.department Economics
dc.relation.journal The Journal of Political Economy
pubs.issue 2
pubs.organisational-group /Duke
pubs.organisational-group /Duke/Trinity College of Arts & Sciences
pubs.organisational-group /Duke/Trinity College of Arts & Sciences/Economics
pubs.publication-status Published
pubs.volume 101

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