Malley, J. R., Muscatelli, V.A., and Woitek, U. (2005) Real business cycles, sticky wages or sticky prices? The impact of technology shocks on US manufacturing. European Economic Review, 49(3), pp. 745-760. (doi:10.1016/S0014-2921(03)00073-4)
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In this paper, we examine empirically the predictions of a range of theoretical models which give a prominent role to technology shocks in explaining business cycles. To this end, we estimate (4-digit SIC) industry-level VAR models for US manufacturing using real output, the real wage and utilization corrected measures of technology and labor input. Our results support both sticky-wage DGE and RBC models over sticky-price DGE models. Moreover, they cast some doubt on the importance of technology shocks as propulsive mechanism for business cycles at the industry level.
|Glasgow Author(s) Enlighten ID:||Muscatelli, Professor Anton and Woitek, Prof Ulrich and Malley, Professor James|
|Authors:||Malley, J. R., Muscatelli, V.A., and Woitek, U.|
|College/School:||College of Social Sciences > Adam Smith Business School > Economics|
|Journal Name:||European Economic Review|
|Published Online:||7 August 2003|