Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Postwar U.S. Data?

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"Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Postwar U.S. Data?" is an influential macroeconomics paper by Jordi Galí that empirically evaluates the ability of real business cycle models driven by technology shocks to explain postwar U.S. economic fluctuations.

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Predicate Object
instanceOf academic paper ⓘ
macroeconomics paper ⓘ
analyzes labor input response to technology shocks ⓘ
output dynamics in response to identified technology shocks ⓘ
approach empirical evaluation of RBC models ⓘ
author Jordi Galí ⓘ
challenges standard real business cycle interpretation of business cycles ⓘ
citationStatus highly cited in macroeconomics literature ⓘ
conclusion RBC models driven solely by technology shocks have difficulty matching key features of postwar U.S. data ⓘ
technology shocks account for only a limited fraction of observed output fluctuations ⓘ
evaluates real business cycle model performance ⓘ
role of technology shocks in driving output fluctuations ⓘ
field business cycle theory ⓘ
empirical macroeconomics ⓘ
macroeconomics ⓘ
finds RBC models typically predict an increase in labor input after a positive technology shock ⓘ
labor input tends to fall on impact after a positive technology shock in the data ⓘ
focusesOn postwar U.S. macroeconomic data ⓘ
hasTitle Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Postwar U.S. Data? ⓘ
implication frictions or nominal rigidities may be important for understanding business cycles ⓘ
influenced development of New Keynesian DSGE models ⓘ
subsequent research on technology shocks and business cycles ⓘ
language English ⓘ
mainTopic aggregate fluctuations ⓘ
postwar U.S. economy ⓘ
real business cycle models ⓘ
technology shocks ⓘ
methodology identification of technology shocks using long-run restrictions ⓘ
structural vector autoregression ⓘ
researchQuestion How well do RBC models driven by technology shocks explain postwar U.S. aggregate fluctuations? ⓘ
supports importance of demand-side or non-technology shocks in business cycles ⓘ
usesDataFrom postwar United States ⓘ
linked to: postwar America

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Jordi Galí → hasNotableWork → Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Postwar U.S. Data? ⓘ
Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Postwar U.S. Data? → hasTitle → Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Postwar U.S. Data? ⓘ