We study how total factor productivity (TFP), energy prices, and the Great Moderation are linked. First we estimate a … negatively affected productivity. This spillover has since disappeared. Second, we show that within the framework of a dynamic … stochastic general equilibrium model, the disappearance of this energy-productivity spillover generates the significantly lower …

This paper sets up a model to account for differences in total factor productivity due to differences in enforcement of … lower in economies with bad enforcement. For this reason, the high-productivity firms in the intermediate goods sector have … no incentive to grow and the low-productivity firms in the final goods sector, benefiting from low intermediate goods …