McAdam, Peter; Cantore, Cristiano; León-Ledesma, Miguel; … - In: Journal of the European Economic Association 12 (2014) 1, pp. 108-128
The response of hours to technology shocks is a key controversy in macroeconomics. We show that differences between RBC and NK models hinge on highly restrictive views of technology. We introduce CES production technologies and demonstrate that the response of hours depends on the...
