Citation
Discussion Paper Details
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Title: Learning by Doing as a Propagation Mechanism
Author(s): Yongsung Chang, Joao F Gomes and Frank Schorfheide
Publication Date: October 2002
Keyword(s): business cycles, labour supply, learning by doing and propagation
Programme Area(s): International Macroeconomics and Labour Economics
Abstract: This Paper suggests that skill accumulation through past work experience, or ?learning-by-doing? (LBD), can provide an important propagation mechanism in a dynamic stochastic general equilibrium model, as the current labour supply affects future productivity. Our econometric analysis uses a Bayesian approach to combine micro-level panel data with aggregate time series. Formal model evaluation shows that the introduction of the LBD mechanism improves the model's ability to fit the dynamics of aggregate output and hours.
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Bibliographic Reference
Chang, Y, Gomes, J and Schorfheide, F. 2002. 'Learning by Doing as a Propagation Mechanism'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3599