TY  - JOUR
AU  - Ríos-Rull,José-Víctor
AU  - Schorfheide,Frank
AU  - Fuentes-Albero,Cristina
AU  - Kryshko,Maxym
AU  - Santaeulàlia-Llopis,Raül
TI  - Methods versus Substance: Measuring the Effects of Technology Shocks on Hours
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15375
PY  - 2009
Y2  - September 2009
UR  - http://www.nber.org/papers/w15375
L1  - http://www.nber.org/papers/w15375.pdf
N1  - Author contact info:
Jose-Victor Rios-Rull
University of Minnesota
Department of Economics
4-101 Hanson Hall (off 4-179)
1925 Fourth Street South
Minneapolis, MN 55455
Tel: (612) 625-0941
Fax: (612) 624-0209
E-Mail: vr0j@umn.edu

Frank Schorfheide
University of Pennsylvania
Department of Economics
3718 Locust Walk
McNeil 525
Philadelphia, PA 19104-6297
Tel: 215/898-8486
Fax: 215/573-2057
E-Mail: schorf@ssc.upenn.edu

Cristina Fuentes-Albero
75 Hamilton Street, New Jersey Hall
Department of Economics
Rutgers, The State University of New Jersey
New Brunswick, NJ
08901-1248
Tel: 2155192134
E-Mail: cfuentes@econ.rutgers.edu

Maxym Kryshko
University of Pennsylvania
Department of Economics
3718 Locust Walk
Philadelphia, PA 19104-6297
E-Mail: mkryshko@sas.upenn.edu

Raul Santaeulalia-Llopis
Department of Economics
Washington University in St. Louis
Campus Box 1208;
St. Louis MO 63130-4899
E-Mail: rauls@wustl.edu
AB  - In this paper, we employ both calibration and modern (Bayesian)  estimation methods to assess the role of neutral and investment-specific technology shocks in generating fluctuations in hours. Using a neoclassical stochastic growth model, we show how answers are shaped by the identification strategies and not by the  statistical approaches. The crucial parameter is the labor supply  elasticity. Both a calibration procedure that uses modern assessments of the Frisch elasticity and the estimation procedures result in technology shocks accounting for 2% to 9% of the variation in hours worked in the data. We infer that we should be talking more about identification and less about the choice of particular quantitative approaches.
ER  -