Publication Type

Journal Article

Publication Date

10-2015

Abstract

Theory suggests a range of technological characteristics that might interact with the business cycle depending on what kind of shocks or propagation mechanisms are quantitatively important. We use variation in industry growth within manufacturing to determine which technological characteristics interact significantly with the business cycle. We find that growth in labor intensive industries is especially sensitive to contractions. We show this cross-industry asymmetry occurs specifically in contractions, not in recoveries nor over the cycle in general.

Keywords

Technology, Business cycle, Financing constraints, Inalienability of human capital, Financial development

Discipline

Economics | Industrial Organization

Research Areas

Macroeconomics

Publication

European Economic Review

Volume

79

First Page

172

Last Page

195

ISSN

0014-2921

Identifier

10.1016/j.euroecorev.2015.07.006

Publisher

Elsevier

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://doi.org/10.1016/j.euroecorev.2015.07.006

Comments

under review at European Economic Review

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