Liu, Zheng; Waggoner, Daniel F.; Zha, Tao - 2009
Great Moderation and business-cycle fluctuations: capital depreci-
ation shocks, neutral technology shocks, and wage markup …
Neutral technology shocks play a much more important role in driving business
cycle fluctuations than do investment … accounting for the business cycle fluctuations. The depreciation shock, on the
other hand, acts as a wedge in the intertemporal …