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- W1504128984 abstract "The research led by Gali (AER 1999) and Basu et al. (AER 2006) raises two important questions regarding the validity of the RBC theory: (i) How important are technology shocks in explaining the business cycle? (ii) Do impulse responses to technology shocks found in the data reject the assumption of ‡exible prices? Using an RBC model, this paper argues that the conditional impulse responses of the U.S. economy to technology shocks are not grounds to reject the notion that technology shocks are the main driving force of the business cycle and the assumption of ‡exible prices, in contrast with the conclusions reached by the literature. Our paper also provides a new approach to deriving aggregate production functions." @default.
- W1504128984 created "2016-06-24" @default.
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- W1504128984 date "2007-01-01" @default.
- W1504128984 modified "2023-10-05" @default.
- W1504128984 title "A Defense of RBC: Understanding the Puzzling Effects of Technology Shocks" @default.
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- W1504128984 doi "https://doi.org/10.2139/ssrn.996917" @default.
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