Ríos-Rull, José-Víctor
[Author]
;
Fuentes-Albero, Cristina
[Other];
Schorfheide, Frank
[Other];
Kryshko, Maxym
[Other];
Santaeulàlia-Llopis, Raül
[Other]National Bureau of Economic Research
Published:
Cambridge, Mass: National Bureau of Economic Research, September 2009
Published in:NBER working paper series ; no. w15375
Extent:
1 Online-Ressource
Language:
English
DOI:
10.3386/w15375
Identifier:
Reproduction note:
Hardcopy version available to institutional subscribers
Origination:
Footnote:
Mode of access: World Wide Web
System requirements: Adobe [Acrobat] Reader required for PDF files
Description:
In this paper, we employ both calibration and modern (Bayesian) estimation methods to assess the role of neutral and investment-specific technology shocks in generating fluctuations in hours. Using a neoclassical stochastic growth model, we show how answers are shaped by the identification strategies and not by the statistical approaches. The crucial parameter is the labor supply elasticity. Both a calibration procedure that uses modern assessments of the Frisch elasticity and the estimation procedures result in technology shocks accounting for 2% to 9% of the variation in hours worked in the data. We infer that we should be talking more about identification and less about the choice of particular quantitative approaches