TY - BOOK ID - 137635521 TI - Methods versus Substance : Measuring the Effects of Technology Shocks on Hours AU - Ríos-Rull, José-Víctor. AU - Schorfheide, Frank. AU - Fuentes-Albero, Cristina. AU - Kryshko, Maxym. AU - Santaeulàlia-Llopis, Raül. AU - National Bureau of Economic Research. PY - 2009 PB - Cambridge, Mass. National Bureau of Economic Research DB - UniCat UR - https://www.unicat.be/uniCat?func=search&query=sysid:137635521 AB - In this paper, we employ both calibration and modern (Bayesian) estimation methods to assess the role of neutral and investment-specific technology shocks in generating fluctuations in hours. Using a neoclassical stochastic growth model, we show how answers are shaped by the identification strategies and not by the statistical approaches. The crucial parameter is the labor supply elasticity. Both a calibration procedure that uses modern assessments of the Frisch elasticity and the estimation procedures result in technology shocks accounting for 2% to 9% of the variation in hours worked in the data. We infer that we should be talking more about identification and less about the choice of particular quantitative approaches. ER -