This Paper studies the impact of wage growth on the evolution of employment in an intertemporal general-equilibrium model with endogenous productivity growth. For real wage growth above laissez-faire levels, we obtain steady-state equilibria in which productivity grows at the same rate as wages,...

We test whether and how the adoption of the euro, narrowly defined as the end of competitive devaluations, has affected member states' productive structures, distinguishing between within and across sector reallocation. We find evidence that the euro has been accompanied by a reallocation of...

In this paper we argue that modelling the trend component in real GNP as a random walk is inconsistent with its interpretation as productivity growth. As an alternative we specify the trend as an Auto Regressive Integrated Moving Average (ARIMA) process, whose impulse response function follows...

We examine the relationships between productivity growth, IT investment and organisational change (DO) using UK firm data. Consistent with the small number of other micro studies we find (a) IT appears to have high returns in a growth accounting sense when DO is omitted; when DO is included the IT...

European Union countries have implemented widespread reforms to product markets in order to stimulate competition, innovation and economic growth. We provide empirical evidence that the reforms carried out under the EU Single Market Programme (SMP) were associated with increased product market...

This Paper examines the importance of competition in the growth and development of firms. We make use of the large-scale natural experiment of the shift from an economic system without competition to a market economy to shed light on the factors that influence innovation by firms and their...

We estimate the impact of skilled and unskilled labour shortages on productivity and wages in the United Kingdom. Skill shortages are higher on average and more variable over the business cycle in the United Kingdom than in comparable economies. Unskilled shortages are comparatively rare, so...

Italy's economic performance between 1945 and 1992 is assessed in a general theoretical framework for productivity growth measurement which enables us to relax the binding assumptions of standard Solow-type neoclassical models. The paper shows that `true productivity' was of minor importance,...

This paper aims at assessing the impact of R&D spillovers on firms’ economic performance as measured by productivity growth. The construction of R&D spillovers is based on Jaffe’s methodology (1986, 1988), which associates econometrics and data analysis. The main objective of the paper is to...

This Paper examines the impact of imported technologies on productivity for a sample of developing and transition countries in Central and Eastern Europe and in the Southern Mediterranean. These economies are getting more and more integrated to the European Union. The Paper departs from earlier...