Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Post-War Us Data?
84 Pages Posted: 21 Sep 2004
Date Written: August 2004
Abstract
Our answer: not so well. We reach 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 co-movement between output and labor input measures.
Keywords: Real business cycles, technology shocks, nominal rigidities, real frictions
JEL Classification: E32
Suggested Citation: Suggested Citation
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