Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9550850 | European Economic Review | 2005 | 16 Pages |
Abstract
In this paper, we examine empirically the predictions of a range of theoretical models which give a prominent role to technology shocks in explaining business cycles. To this end, we estimate (4-digit SIC) industry-level VAR models for US manufacturing using real output, the real wage and utilization corrected measures of technology and labor input. Our results support both sticky-wage DGE and RBC models over sticky-price DGE models. Moreover, they cast some doubt on the importance of technology shocks as propulsive mechanism for business cycles at the industry level.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
James R. Malley, V.Anton Muscatelli, Ulrich Woitek,