Theodorou, Athena T.; Francis, Neville R.; Owyang, … - Econometric Society - 2004
) estimated two models: a bivariate model of productivity and hours and a five-variable model adding money, inflation, and … inflation. Using the Gali (1999) identification, they find that during the Volcker-Greenspan (VG) era the Fed's response to the … rate. Moreover, they find that the inflation and hours responses in the two periods differ in sign. Our goal is to expand …