TY  - JOUR
AU  - Burnside,Craig
AU  - Eichenbaum,Martin
AU  - Rebelo,Sergio
TI  - Sectoral Solow Residuals
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5286
PY  - 1995
Y2  - October 1995
UR  - http://www.nber.org/papers/w5286
L1  - http://www.nber.org/papers/w5286.pdf
N1  - Author contact info:
Craig Burnside
Department of Economics
Duke University
213 Social Sciences Building
Durham, NC 27708-0097
Tel: 919/660-1808
Fax: 919/684-8974
E-Mail: craig.burnside@duke.edu

Martin S. Eichenbaum
Department of Economics
Northwestern University
2003 Sheridan Road
Evanston, IL  60208
Tel: 847/491-8232
Fax: 847/491-7001
E-Mail: eich@northwestern.edu

Sergio Rebelo
Northwestern University
Kellogg School of Management
Department of Finance
Leverone Hall
Evanston, IL  60208-2001
Tel: 847/467-2329
Fax: 847/491-5719
E-Mail: s-rebelo@northwestern.edu
AB  - This paper presents capital utilization corrected measures of technology shocks for aggregate and disaggregated (two digit Standard Industrial Classification code) industries.  We correct for variations in capital utilization by employing industrial electrical use as a measure of capital services.  In contrast, the standard measures of technology shocks used in the Real Business Cycle literature are based on economy wide data and assume that capital services are proportional to the stock of measured capital.  To assess the impact of these differences, we contrast selected properties of the competing technology shock measures.  We argue that the properties of technology shocks for the manufacturing sector are quite different than those used in the RBC literature.  We also find that correcting for capital utilization has important implications for the properties of the Solow residual.
ER  -