Authors

• Luis Alberiko Gil-Alana (alana@unav.es)
• Antonio Moreno (antmoreno@unav.es)

Abstract
Previous research has found that the response of hours worked to a technology shock crucially depends on whether the variable hours is assumed to be an I(0) or an I(1) variable ex-ante. In this paper we employ a multivariate fractionally integrated model which allows us to determine simultaneously the order of integration of hours worked and the response of hours to a technology shock. We find that hours fall on impact in response to a positive technology shock.

Classification JEL:C12, C22, C32, C51, E32

Creation Date:2006-02-02

Number:null/06