The dynamics of hours worked and technology

Cristiano Cantore\, , Filippo Ferroni\, and Miguel A. Leon-Ledesma, (2012) The dynamics of hours worked and technology Working Paper. Banco de España.

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Abstract

We study the relationship between hours worked and technology during the postwar period in the US. We show that the responses of hours to technological improvements have increased over time, and that the patterns captured by the SVAR are consistent with those obtained from an RBC model with a less than unitary elasticity of substitution between capital and labor. Data supports the hypothesis that the observed changes in the response of hours to a technology shock are attributable to changes in the magnitude of the degree of capital-labor substitution. We argue that the observed time-variation in can arise from changes in the structural composition of sectors (or factors) in a heterogeneous inputs production function or from biases in technological change.

Item Type:	Monograph (Working Paper)
Divisions :	Faculty of Arts and Social Sciences > School of Economics
Authors :	Cristiano Cantore\, , Filippo Ferroni\, and Miguel A. Leon-Ledesma,
Date :	2012
Uncontrolled Keywords :	Real Business Cycles models\, Constant Elasticity of Substitution production function\, Hours worked\
Related URLs :	Author
Additional Information :	© BANCO DE ESPAÑA, Madrid, 2012
Depositing User :	Symplectic Elements
Date Deposited :	20 Sep 2013 11:51
Last Modified :	31 Oct 2017 15:12
URI:	http://epubs.surrey.ac.uk/id/eprint/799645

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