procyclicality of productivity, and simultaneously predicts large welfare losses from monetary non-neutrality. The key features of …

total factor productivity (TFP) and by the capital stock per capita. These variables suffice to calculate welfare changes …

Productivity rises in booms and falls in recessions. There are four main explanations for this procyclical productivity … procyclical productivity as an essential feature of business cycles because each explanation has important implications for … utilization and resource reallocations are particularly important in explaining procyclical productivity. We also argue that the …

and capital are important for explaining procyclical productivity. Here I present two simple and direct tests of these …

Explanations of procyclical productivity play a key role in a variety of business-cycle models. Most of these models … aggregate productivity changes into several terms, each of which has an economic interpretation. However, many of these terms …