@article{Technology:1406,
      recid = {1406},
      author = {Phaneuf, Louis and Rebei, Nooman},
      title = {Technology Shocks and Business Cycles: The Role of  Processing Stages and Nominal Rigidities},
      publisher = {Bank of Canada},
      address = {2007},
      pages = {1 online resource (iii, 39 pages)},
      abstract = {This paper develops and estimates a dynamic general  equilibrium model that realistically accounts for an  input-output linkage between firms operating at different  stages of processing. Firms face technological change which  is specific to their processing stage and charge new prices  according to stage-specific Calvo-probabilities. Only a  fixed fraction of households have an opportunity to adjust  nominal wages to new information each period.  Intermediate-stage technology shocks account for the bulk  of output variability at business cycle frequencies, while  final-stage technology shocks do not explain much. Although  technology shocks drive the business cycle, the model  predicts weakly procyclical real wages, and a near-zero  correlation between return to working and hours worked.  Furthermore, the model has rich implications for the  dynamics of business cycles.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/1406},
      doi = {https://doi.org/10.34989/swp-2007-7},
}