06778oam 22012974 450 991078648210332120230801225341.01-4755-2415-31-4755-5236-X(CKB)2670000000278818(EBL)1606955(SSID)ssj0000944123(PQKBManifestationID)11612517(PQKBTitleCode)TC0000944123(PQKBWorkID)10982501(PQKB)11675520(MiAaPQ)EBC1606955(Au-PeEL)EBL1606955(CaPaEBR)ebr10627039(OCoLC)808636008(IMF)WPIEE2012211(IMF)WPIEA2012211(EXLCZ)99267000000027881820020129d2012 uf 0engur|n|---|||||txtccrWhat (Really) Accounts for the Fall in Hours After a Technology Shock? /Nooman RebeiWashington, D.C. :International Monetary Fund,2012.1 online resource (42 p.)IMF Working PapersDescription based upon print version of record.1-4755-8057-6 1-4755-0561-2 Includes bibliographical references.Cover; Contents; I. Introduction; II. Stylized facts and the RBC model; A. Stylized facts; Figures; 1. SVAR IRFs following a technology shock; B. The benchmark RBC model; 1. Representative household's and firm's problems; 2. Impulse-response functions; III. Alternative models; A. The sticky price (SP) model; 2. Impulse-response functions: SVAR versus the standard RBC model; B. The entry-exit (EE) model; 3. Impulse-response functions: SVAR versus the SP model; C. The habit in consumption (HC) model; 4. Impulse-response functions: SVAR versus the EE model5. Impulse-response functions: SVAR versus the HC modelD. The persistent technology shock (PT) model; E. The labor friction (LF) model; 6. Impulse-response functions: SVAR versus the PT model; F. The Leontief production (LP) model; 7. Impulse-response functions: SVAR versus the LF model; IV. Full information estimation and model comparison; 8. Impulse-response functions: SVAR versus the LP model; A. Priors and data; Tables; 1. Prior distributions of parameters; B. Estimation results and model comparison; 2. Parameter Estimation Results; C. Impulse-response functions9. IRFs of the Alternative Estimated ModelsD. Autocorrelation functions; 10. Autocorrelations of the Alternative Models; 3. Autocorrelation statistics; V. Robustness; 4. Estimation results with sticky wages; 11. Autocorrelations: SP versus HC model; VI. Conclusion; ReferencesThe paper asks how state of the art DSGE models that account for the conditional response of hours following a positive neutral technology shock compare in a marginal likelihood race. To that end we construct and estimate several competing small-scale DSGE models that extend the standard real business cycle model. In particular, we identify from the literature six different hypotheses that generate the empirically observed decline in worked hours after a positive technology shock. These models alternatively exhibit (i) sticky prices; (ii) firm entry and exit with time to build; (iii) habit in consumption and costly adjustment of investment; (iv) persistence in the permanent technology shocks; (v) labor market friction with procyclical hiring costs; and (vi) Leontief production function with labor-saving technology shocks. In terms of model posterior probabilities, impulse responses, and autocorrelations, the model favored is the one that exhibits habit formation in consumption and investment adjustment costs. A robustness test shows that the sticky price model becomes as competitive as the habit formation and costly adjustment of investment model when sticky wages are included.IMF Working Papers; Working Paper ;No. 2012/211Labor supplyEffect of technological innovations onMathematical modelsHours of laborEffect of technological innovations onEconometric modelsEconometricsimfLaborimfMacroeconomicsimfInnovationimfResearch and DevelopmentimfTechnological ChangeimfIntellectual Property Rights: GeneralimfLabor Economics: GeneralimfWages, Compensation, and Labor Costs: GeneralimfTime-Series ModelsimfDynamic Quantile RegressionsimfDynamic Treatment Effect ModelsimfDiffusion ProcessesimfState Space ModelsimfPrice LevelimfInflationimfDeflationimfLabourimfincome economicsimfTechnologyimfgeneral issuesimfEconometrics & economic statisticsimfReal wagesimfStructural vector autoregressionimfSticky pricesimfEconometric analysisimfPricesimfLabor economicsimfWagesimfUnited StatesimfLabor supplyEffect of technological innovations onMathematical models.Hours of laborEffect of technological innovations onEconometric models.EconometricsLaborMacroeconomicsInnovationResearch and DevelopmentTechnological ChangeIntellectual Property Rights: GeneralLabor Economics: GeneralWages, Compensation, and Labor Costs: GeneralTime-Series ModelsDynamic Quantile RegressionsDynamic Treatment Effect ModelsDiffusion ProcessesState Space ModelsPrice LevelInflationDeflationLabourincome economicsTechnologygeneral issuesEconometrics & economic statisticsReal wagesStructural vector autoregressionSticky pricesEconometric analysisPricesLabor economicsWagesRebei Nooman1578635DcWaIMFBOOK9910786482103321What (Really) Accounts for the Fall in Hours After a Technology Shock3858208UNINA