correlation between hours worked and labor productivity. In this paper, I show that this conjecture is not necessarily correct. In … the basic RBC model, I find that hours worked fall and labor productivity rises after a positive permanent technology … a positive permanent technology shock along with a rise in labor productivity that are in line with what the data …

This paper examines the effects of expansionary technology shocks (shocks that increase labor productivity and factor … inputs) as opposed to contractionary technology shocks (shocks that increase labor productivity, but decrease factor inputs … productivity and production inputs. In addition, these shocks trigger different reactions of certain variables, which can help …