-open-economy real-business-cycle model driven by nonstationary productivity shocks. We find that the RBC model does a poor job at … business cycles in emerging markets and, importantly, assigns a negligible role to nonstationary productivity shocks …

Using data for the G7 countries, I estimate conditional correlations of employment and productivity, based on a …) technology shocks appear to induce a negative comovement between productivity and employment, counterbalanced by a positive … positive technology shock, and (c) measured productivity increases temporarily in response to a positive demand shock. More …

rigidities: investment adjustment costs, variable capacity utilization, habit formation in consumption, and habit formation in … leisure. Business cycles are assumed to be driven by permanent and stationary neutral productivity shocks, permanent … investment-specific shocks, and government spending shocks. Each of these shocks is buffeted by four types of structural …

We examine how credit constraints affect the cyclical behavior of productivity-enhancing investment and thereby … a long-term productivity-enhancing one. Because it takes longer to complete, long-term investment has a relatively less … volatility and growth. We first develop a simple growth model where firms engage in two types of investment: a short-term one and …

This paper studies the productivity implications of the cyclical reallocation of capital. Frictions in the reallocation … reallocation and thus in productivity. These frictions also impact the capital accumulation decision. The effects are … plant-level productivity. Instead of relying on approximative solution techniques we show analytically that a higher …

The cyclical behavior of the relative price of investment goods plays an important role in many modern macroeconomic … models. In this paper we examine the behavior of several measures of the relative price of investment goods for the U … investment appears predominantly procyclical. When looking at more disaggregated series, most measures are procyclical, a few …

The evidence for a productivity-based explanation for real exchange rate behavior of East Asian currencies is examined … relative productivity ratios, one finds a relationship for Japan, Malaysia, and the Philippines. Only when augmenting the … productivity variables, as well as other demand side factors, are less encouraging, except for a small subset of countries …

The relative price of services rises with development. A standard interpretation of this fact is that productivity …-country income elasticity of sectoral productivity is large in non-traditional services (1.14), smaller in manufacturing (1.06) and … aggregate productivity and that the input-output structure is important in this assessment …

The sensitivity of U.S. aggregate investment to shocks is procyclical: the initial response increases by approximately … counterexample to the claim that microeconomic investment lumpiness is inconsequential for macroeconomic analysis …

investment; the impact of uncertainty on investment occurs primarily through changes in credit spreads; and innovations in credit … spreads have a strong effect on investment, irrespective of the level of uncertainty. These findings raise a question … financial shocks. By influencing the effective supply of credit, both types of shocks exert a powerful effect on investment and …