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Discussion Paper Details
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Full Details
Title: Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Post-War US Data?
Author(s): Jordi Galí and Pau Rabanal
Publication Date: August 2004
Keyword(s): nominal rigidities, real business cycles, real frictions and technology shocks
Programme Area(s): International Macroeconomics
Abstract: Our answer: not so well. We reach that conclusion after reviewing recent research on the role of technology as a source of economic fluctuations. The bulk of the evidence suggests a limited role for aggregate technology shocks, pointing instead to demand factors as the main force behind the strong positive co-movement between output and labor input measures.
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Bibliographic Reference
Galí, J and Rabanal, P. 2004. 'Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Post-War US Data?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4522