In this seminar, Daniel Silva Withmory will present his paper that analyses the responses of output and hours worked to shocks that have permanent and transitory effects on output.

The paper uses an SVAR model with long-run restrictions and Australian data from 1978 to 2017. As in Blanchard and Quah (1989), the paper interprets the first type of shocks as a supply disturbance and the second type of shocks as a demand disturbance. The supply disturbance takes the form of a neutral technology shock and is later extended to include an investment-specific technology shock. Hours worked are decomposed into average hours worked and employment. This decomposition allows the analysis of the effects of unanticipated and anticipated temporary demand shocks associated with shocks to average hours and employment, respectively.

Daniel Silva Withmory is a PhD student in Economics at CAMA in the Crawford School of Public Policy. His thesis focuses on empirical studies on macroeconomic policy.

The CAMA Macroeconomics Brown Bag Seminars offer CAMA speakers, in particular PhD students, an opportunity to present their work in progress in front of their peers, and reputable visitors to showcase their work.