Technology Shocks

Susanto Basu · John Fernald · Miles Kimball

This 2006 *American Economic Review* paper (circulated as NBER Working Paper 10592, June 2004) asks a question its own abstract answers in one word -- "Yes" -- are technology improvements …

Paul M. Romer

This 1990 Journal of Political Economy paper by Paul Romer models long-run growth as driven by technological change that arises from intentional research investment by profit-maximizing firms, …

David Altig · Lawrence J. Christiano · Martin Eichenbaum · Jesper Lindé

Estimated New Keynesian models reconcile inertial inflation with Calvo pricing only by forcing firms to re-optimise prices once every two years or more, which micro price data contradict. Making …

Paul M. Romer

This 1986 Journal of Political Economy paper by Paul Romer builds a fully specified competitive-equilibrium model of long-run growth in which knowledge is an input to production with increasing …

Jeremy Greenwood · Zvi Hercowitz · Gregory W. Huffman

Keynes's idea that shocks to the marginal efficiency of investment drive fluctuations is placed inside a neoclassical model in which firms choose how hard to run their capital; a shock that raises the …

Neville Francis · Valerie A. Ramey

This 2005 *Journal of Monetary Economics* paper (circulated as NBER Working Paper 8726, January 2002) subjects a startling empirical result -- that identified "technology shocks" appear to *reduce* …

Silvia Miranda-Agrippino · Sinem Hacıoğlu-Hoke · Kristina Bluwstein

This paper constructs an instrumental variable for technology news shocks using patent applications, relaxing all identifying assumptions traditionally used in the news-shock literature. The IV is the …

Robert G. King · Charles I. Plosser · Sergio T. Rebelo

This 1988 Journal of Monetary Economics paper by Robert King, Charles Plosser, and Sergio Rebelo presents the neoclassical one-sector model of capital accumulation, augmented with a labor-leisure …

Paul Beaudry · Franck Portier

This 2006 *American Economic Review* paper (circulated as NBER Working Paper 10548, June 2004) develops a novel way to use the joint behavior of stock prices and measured total factor productivity …

Jordi Galí

Gali decomposes measured labor productivity and employment into a technology component and a non-technology ("demand") component, using a bivariate structural VAR identified by a single long-run …

Lawrence J. Christiano · Richard M. Todd

Investment projects begin with a long planning phase that consumes very little in the way of resources, and building that phase into an otherwise standard real business cycle model delays the response …