Learning-by-doing as a propagation mechanism

Yongsung Chang, Joao F. Gomes, Frank Schorfheide

Research output: Contribution to journalArticle

79 Citations (Scopus)

Abstract

This paper suggests that skill accumulation through past work experience, or "learning-by-doing" (LBD), can provide an important propagation mechanism in a dynamic stochastic general-equilibrium model, as the current labor supply affects future productivity. Our econometric analysis uses a Bayesian approach to combine micro-level panel data with aggregate time series. Formal model evaluation shows that the introduction of the LBD mechanism improves the model's ability to fit the dynamics of aggregate output and hours.

Original languageEnglish
Pages (from-to)1498-1520
Number of pages23
JournalAmerican Economic Review
Volume92
Issue number5
DOIs
Publication statusPublished - 2002 Dec

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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