Citation

Discussion Paper Details

Please find the details for DP4915 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Trends in Hours, Balanced Growth and the Role of Technology in the Business Cycle

Author(s): Jordi Galí

Publication Date: February 2005

Keyword(s): non-stationary hours, real business cycles and technology shocks

Programme Area(s): International Macroeconomics

Abstract: The present paper revisits a property embedded in most dynamic macroeconomic models: the stationarity of hours worked. First, I argue that, contrary to what is often believed, there are many reasons why hours could be non-stationary in those models, while preserving the property of balanced growth. Second, I show that the post-war evidence for most industrialized economies is clearly at odds with the assumption of stationary hours per capita. Third, I examine the implications of that evidence for the role of technology as a source of economic fluctuations in the G7 countries.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4915

Bibliographic Reference

Galí, J. 2005. 'Trends in Hours, Balanced Growth and the Role of Technology in the Business Cycle'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4915