Chari, Varadarajan V. - 2004 - [Elektronische Ressource], rev
and i.i.d.
over time. We refer to σ
z
ε
z
mt
and σ
l
ε
d
mt
as the innovations to technology and labor. These
innovations … technology shock is calculated recursively
as follows. Start at a steady state, set the technology shock innovations ε
z
m0 …
= ∆ > 0, ε
z
mt
=0
for t ≥ 1, and set the labor tax innovations ε
d
mt
=0for all t. From (9), (10), and (13) we
see that the …