Michelis, Andrea De; Estevão, Marcello M.; Wilson, … - International Monetary Fund (IMF) - 2013
Traditionally, shocks to total factor productivity (TFP) are considered exogenous and the employment response depends … efficiency, rendering TFP endogenous to firms’ production decisions. We present robust cross-country evidence of a strong … reductions in TFP growth. These results have important policy implications, including that low productivity growth in some …