Factor demand linkages, technology shocks, and the business cycle
Holly, S. and Petrella, Ivan (2012) Factor demand linkages, technology shocks, and the business cycle. Review of Economics and Statistics 94 (4), pp. 948-963. ISSN 0034-6535.
|
Text
Holly_Petrella_REStat_2012.pdf - Published Version of Record Download (2MB) | Preview |
Abstract
This paper argues that factor demand linkages can be important for the transmission of both sectoral and aggregate shocks. We show this using a panel of highly disaggregated manufacturing sectors together with sectoral structural VARs. When sectoral interactions are explicitly accounted for, a contemporaneous technology shock to all manufacturing sectors implies a positive response in both output and hours at the aggregate level. Otherwise there is a negative correlation, as in much of the existing literature. Furthermore, we find that technology shocks are important drivers of the business cycle.
Metadata
| Item Type: | Article |
|---|---|
| School: | Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School |
| Depositing User: | Ivan Petrella |
| Date Deposited: | 28 May 2013 09:43 |
| Last Modified: | 02 Aug 2023 17:04 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/6868 |
Statistics
Additional statistics are available via IRStats2.
Archive Staff Only (login required)
 |
Edit/View Item |