Interpreting Investment Specific Technology Shocks
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IST shocks are often interpreted as multi-factor productivity (MFP) shocks in a separate investment-producing sector. However, this interpretation is strictly v
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Our answer: Not so well. We reached that conclusion after reviewing recent research on the role of technology as a source of economic fluctuations. The bulk of
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This article explores the role of investment specific technology shocks for emerging market business cycle fluctuations. The analysis is motivated by two key em
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Pages: 29
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In this paper, we first introduce investment-specific technology (IST) shocks to an otherwise standard international real business cycle model and show that a t
