FÈVE, PATRICK; GUAY, ALAIN - In: Journal of Money, Credit and Banking 41 (2009) 5, pp. 987-1013
The response of hours to a technology shock is a controversial issue in macroeconomics. Part of the difficulty lies in that the estimated response is sensitive to the specification of hours in structural vector autoregressions (SVARs). This paper uses a simple two-step approach to consistently...