Fernald, John G.; Basu, Susanto - Federal Reserve Board (Board of Governors of the … - 1999
Productivity rises in booms and falls in recessions. There are four main explanations for procyclical productivity: (i … microfoundations for our preferred approach of estimating a first-order approximation to the production function, using a theoretically … are particularly important in explaining procyclical productivity. We argue that the reallocation effects that we identify …