Tech shocks boost wages, consumption, and output, changing economic landscape.
The study looked at how improvements in technology affect the U.S. economy. By analyzing data and using specific restrictions, the researchers found that when technology gets better, wages, spending, investment, and production go up. People also tend to work more hours, following a certain pattern. These results were consistent across different ways of setting up the analysis, showing that technology shocks have a positive impact on various aspects of the economy.