Technology shock

Technology shock

[

An example of the function, where Y=output, L=labour, MPL=Marginal product of labour.----The technology shock increases the output given the same level of, in this case, labour. The marginal product of labour is higher after the positive technology shock, this can be seen in the MPL (blue) line being steeper.] Technology shocks are events in a macroeconomic model, that change the production function. Usually this is modelled with an aggregate production function that has a scaling factor.

A technology shock affects an industry or firm's productivity, this may be a positive shock - increasing the output for a given set of inputs, or a negative shock - decreasing the output for a given set of inputs. Negative shocks are much less common than positive shocks as technology rarely moves backwards.

ee also

* Supply shock


Wikimedia Foundation. 2010.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • Shock (economics) — In economics a shock is an unexpected or unpredictable event that affects an economy, either positively or negatively. Resiliance to such events depends on general preparedness, economic policy, existing infrastructure and effective emergency… …   Wikipedia

  • Shock and awe — Shock and awe, technically known as rapid dominance, is a military doctrine based on the use of overwhelming power, dominant battlefield awareness, dominant maneuvers, and spectacular displays of force to paralyze an adversary s perception of the …   Wikipedia

  • Shock Value (Timbaland album) — Shock Value Studio album by Timbaland Released April 3, 2007 (see rele …   Wikipedia

  • Shock stop — is a trademark system developed by the sports equipment manufacturer Head to damp (reduce) vibration in its range of titanium tennis rackets. It works by drawing the vibration down the frame of the racket into the handle, where a ball bearing… …   Wikipedia

  • Shock absorber — Gas damper A shock absorber is a mechanical device designed to smooth out or damp shock impulse, and dissipate kinetic energy. It is a type of dashpot. Contents …   Wikipedia

  • Shock to the System (Billy Idol song) — Infobox Single Name = Shock to the System Caption = Cover art by Mark Frauenfelder. Artist = Billy Idol from Album = Cyberpunk Released = Start date|1993|06|08 (US) 1993 (NL) 1993 (Aus) 1993 (Jap) 1993 (U.K.) Format = 5 CD 3 CD (Japanese release) …   Wikipedia

  • Shock (novel) — Infobox Book | name = Shock author = Robin Cook country = USA language = English genre = Science fiction, Novel publisher = G. P. Putnam s Sons, Macmillan and Pan Books release date = 2001 media type = Print (Paperback) pages = 404 (paperback… …   Wikipedia

  • shock absorber — Mach. a device for damping sudden and rapid motion, as the recoil of a spring mounted object from shock. [1905 10] * * * Device for controlling unwanted motion of a spring mounted vehicle. On an automobile, the springs act as a cushion between… …   Universalium

  • Technology in The Hitchhiker's Guide to the Galaxy — The fictional universe of The Hitchhiker s Guide to the Galaxy series by Douglas Adams is a galaxy spanning society of interacting extraterrestrial cultures, so the technological level in the series is highly advanced, though often unreliable.… …   Wikipedia

  • Supply shock — A supply shock is an event that suddenly changes the price of a commodity or service. It may be caused by a sudden increase or decrease in the supply of a particular good. This sudden change affects the equilibrium price. A negative supply shock… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”