Title: What happens after a technology shock?
Description: "We provide empirical evidence that a positive shock to technology drives up per capita hours worked, consumption, investment, average productivity and output.  This evidence contrasts sharply with the results reported in a large and growing literature that argues, on the basis of aggregate data, that per capita hours worked fall after a positive technology shock.  We argue that the difference in results primarily reflects specification error in the way that the literature models the low-frequency component of hours worked"--Federal Reserve Board web site.
Subjects: Business cycles, Econometric models, Economic aspects of Technological innovations, Technological innovations