This paper reexamines wage and price dynamics in response to permanent shocks to productivity. We estimate a micro …-founded dynamic general equilibrium (DGE) model of the U.S. economy with sticky wages and sticky prices using impulse responses to … permanent technology shock, implying that, on average, prices adjust quickly and that there is little evidence for any intrinsic …

sector-specific TFPs based solely on factor prices and the relative price of intermediate goods to final goods over the 1959 …-2000 period. An aggregate TFP measure based on these series appears quite similar to the multifactor productivity measure … constructed by the BLS. We find statistical evidence of structural breaks in the growth rate of our productivity measures in 1973 …

and productivity. A model with monopolistic competition, a continuum-of-goods, and endogenous tradability allows for … theory and history to be consistent for a wide range of underlying productivity shocks. …

productivity" channel. The relative price channel results from changes in the relative prices of aggregates, such as investment vis …-a-vis consumption goods, which occurs in a sectoral model in response to even standard aggregate shocks. The relative productivity … reasonable parameterizations, the relative productivity channel causes aggregate productivity to vary procyclically in response …

sector-specific TFPs based solely on factor prices and the relative price of intermediate goods to final goods over the 1959 …-2000 period. An aggregate TFP measure based on these series appears quite similar to the multifactor productivity measure … constructed by the BLS. We find statistical evidence of structural breaks in the growth rate of our productivity measures in 1973 …

This paper reexamines wage and price dynamics in response to permanent shocks to productivity. We estimate a micro …-founded dynamic general equilibrium (DGE) model of the U.S. economy with sticky wages and sticky prices using impulse responses to … permanent technology shock, implying that, on average, prices adjust quickly and that there is little evidence for any intrinsic …

and productivity. A model with monopolistic competition, a continuum-of-goods, and endogenous tradability allows for … theory and history to be consistent for a wide range of underlying productivity shocks. …