An Empirical Study on the Relationship between the Labor Hording and the Business Cycles in Taiwan

• Main Authors: Yi -shiuan, 吳懿軒
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/88511820191496339665

碩士 === 國立中正大學 === 國際經濟所 === 94 === In this paper we apply the methods of Burnside，Eichenbaum，Rebelo(1993) to investigate whether both the labor hoarding of manufactures and the real business cycles have some relationships in Taiwan. We conclude that the percentage of total factor productivity variability that technology shocks can account for is substantially reduced about 40 percent once labor hoarding is allowed for. It makes that the percentage of solow residual variability that not only technology shocks but also labor hoarding can account for is quite obvious. These empirical findings suggest that the manufactures increase labor input and reduce the labor hoarding during the economic expansion, but the manufactures reduce labor input and increase the labor hoarding during the economic contraction. The labor hoarding of manufactures indeed becomes one of the most important factors for explaining Taiwan’s business cycles.