Abstract
In this paper, we empirically investigate the dynamic effects of neutral & investment-specific technology shocks on labor employment in China. Under the assumption that investment-specific technology shock is the unique source of secular trend in relative price of investment goods, we find that labor employment increases (decreases) in response to a positive investment-specific (neutral) shock in an identified SVAR with long-run restriction. We argue that empirical results obtained in one-neutral-shock model do misrepresent the important short-run dynamics of employment to different technology shocks in the actual economy.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.