Title: Endogenous technical progress and business cycles
Language: English
Authors: Lüschen, Gregor 
Qualification level: Diploma
Advisor: Reiter, Michael
Issue Date: 2013
Number of Pages: 49
Qualification level: Diploma
In this paper, I discuss a real business cycle model featuring endogenous technical progress. In the model, the high-frequency uctuations of the conventional business cycle are driven through a shock to wage markups. Through procyclical variations in research and development expenditures as well as in adoption expenditures they are propagated into a persistent medium-term cycle. I evaluate the model by comparing moments of artificial data generated by the model economy to the actual data moments. I put special interest on the behavior of variables at the heart of the endogenous technology mechanism. I find that the model performs well overall. The behavior of some technology variables implied by the model is somehow at odds with the data, though the discrepancies are not very robust. In particular, the model cannot account for the Granger causality of adoption on output, which might point to the presence of a supply shock directly affecting adoption.
URI: https://resolver.obvsg.at/urn:nbn:at:at-ubtuw:1-65111
Library ID: AC10895608
Organisation: E017 - Weiterbildungszentrum der TU Wien 
Publication Type: Thesis
Appears in Collections:Thesis

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