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- W1522552012 abstract "This paper analyzes the robustness of the estimate of a positive productivity shock on hours to the presence of a possible unit root in hours. Estimations in levels or in first differences provide opposite conclusions. We rely on an agnostic procedure in which the researcher does not have to choose between a specification in levels or in first differences. The method uses alternative approximations based on local-to-unity asymptotic theory and allows the lead-time of the impulse response function to be a fixed fraction of the sample size. These devices provide better approximations in small samples and give confidence bands that have better coverage properties at medium and long horizons than existing methods. We find that a positive productivity shock has a negative effect on hours, as in Francis and Ramey (2001), but the effect is much more short-lived, and disappears after two quarters. The effect becomes positive at business cycle frequencies, as in Christiano et al. (2003)" @default.
- W1522552012 created "2016-06-24" @default.
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- W1522552012 date "2004-08-11" @default.
- W1522552012 modified "2023-09-27" @default.
- W1522552012 title "Do Technology Shocks Drive Hours Up or Down" @default.
- W1522552012 hasPublicationYear "2004" @default.
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