Methods versus substance: Measuring the effects of technology shocks

José Víctor Ríos-Rull, Frank Schorfheide, Cristina Fuentes-Albero, Maxym Kryshko, Raül Santaeulàlia-Llopis

Research output: Contribution to journalArticlepeer-review


Calibration and modern (Bayesian) estimation methods for a neoclassical stochastic growth model are applied to make the case that the identification of key parameters, rather than quantitative methodologies per se, is responsible for empirical findings. For concreteness, the model is used to measure the contributions of technology shocks to the business cycle fluctuations of hours worked and output. Along the way, new insights are provided in the parameter identification associated with likelihood-based estimation, the sensitivity of likelihood-based estimation to the choice of structural shocks is assessed, and Bayesian model averaging is used to aggregate findings obtained from different DSGE model specifications.

Original languageEnglish (US)
Pages (from-to)826-846
Number of pages21
JournalJournal of Monetary Economics
Issue number8
StatePublished - Dec 2012

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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