Technology shocks, structural breaks and the effects on the business cycle

Atella VincenzoCubadda GianlucaCentoni Marco
CEIS Research Paper
This paper contributes to the literature on the role of technology shocks as source of the business cycle in two ways. First, we document that time-series of US productivity and hours are apparently affected by a structural break in the late 60’s, which is likely due to a major change in the monetary policy. Second, we show that the importance of demand shocks over the business cycle has sharply increased after the break.
Number: 105
Keywords: Business cycle, technology shocks, structural breaks
JEL codes: C32, E32
Date: Wednesday 17 October 2007
Revision Date: Wednesday 17 October 2007