Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/227099
Authors: 
Claudio, João C.
von Schweinitz, Gregor
Year of Publication: 
2020
Series/Report no.: 
IWH Discussion Papers No. 25/2020
Abstract: 
This paper investigates the propagation of technology news shocks within and across industrialised economies. We construct quarterly utilisation-adjusted total factor productivity (TFP) for thirteen OECD countries. Based on country-specific structural vector autoregressions (VARs), we document that (i) the identified technology news shocks induce a quite homogeneous response pattern of key macroeconomic variables in each country; and (ii) the identified technology news shock processes display a significant degree of correlation across several countries. Contrary to conventional wisdom, we find that the US are only one of many different sources of technological innovations diffusing across advanced economies. Technology news propagate through the endogenous reaction of monetary policy and via trade-related variables. That is, our results imply that financial markets and trade are key channels for the dissemination of technology.
Subjects: 
technology news shocks
technology spillover
structural VAR
international trade
JEL: 
E24
E32
F41
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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