Article

Understanding the effect of technology shocks in SVARs with long-run restrictions

Jeremy Chaudourne, Patrick Fève et Alain Guay

Résumé

This paper studies the statistical properties of impulse response functions in structural vector autoregressions (SVARs) with a highly persistent variable as hours worked and long–run identifying restrictions. The highly persistent variable is specified as a nearly stationary persistent process. Such process appears particularly well suited to characterize the dynamics of hours worked because it implies a unit root in finite sample but is asymptotically stationary and persistent. This is typically the case for per capita hours worked which are included in SVARs. Theoretical results derived from this specification allow to explain most of the empirical findings from SVARs which include U.S. hours worked.

Mots-clés

SVARs; long-run restrictions; locally nonstationary process; technology shocks; hours worked;

Codes JEL

  • C32: Time-Series Models • Dynamic Quantile Regressions • Dynamic Treatment Effect Models • Diffusion Processes
  • E32: Business Fluctuations • Cycles

Remplace

Jeremy Chaudourne et Patrick Fève, « Understanding the Effect of Technology Shocks in SVARs with Long-Run Restrictions », TSE Working Paper, n° 12-331, août 2012.

Référence

Jeremy Chaudourne, Patrick Fève et Alain Guay, « Understanding the effect of technology shocks in SVARs with long-run restrictions », Journal of Economic Dynamics and Control, vol. 41, avril 2014, p. 154–172.

Publié dans

Journal of Economic Dynamics and Control, vol. 41, avril 2014, p. 154–172