News as slow diffusing technology
Type
working paper
Date Issued
2019-02-05
Author(s)
Abstract (De)
In this paper we develop a medium scale dynamic stochastic general equilibrium model with real frictions that proposes an explanation for the evolution of productivity and delivers the comovement of macroeconomic aggregates in response to a technology diffusion news shock. An important feature of the model is that, even though the technology frontier evolves exogenously, the production economy needs to engage in a costly adoption process in order to reap the benefits of using newly developed technologies. The model predictions match the empirical results of both unanticipated productivity and technology diffusion news shocks qualitatively.
Language
English
Keywords
productivity shock
news shock
business cycle
endogenous adoption of technology
horizontal innovation
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Quantitative Economic Methods
Subject(s)
Division(s)
Contact Email Address
maria.bolboaca@gmail.com
Eprints ID
258167
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