labour input

Pricing Behaviour and the Response of Hours to Productivity Shocks

JEL codes: 
E31, E32
Version Date: 
Feb 2006

Recent contributions have suggested that technology shocks have a negative impact on hours, contrary to the prediction of standard flexible-price models of the business cycle. Some authors have interpreted this finding as evidence in favour of sticky-price models, while others have either extended flexible-price models or disputed the empirical finding itself.

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