overoptimistic. We find that it is difficult to generate a boom-bust cycle (a period in which stock prices, consumption, investment …

firm level investment and high-frequency identified monetary policy shocks. We show that the reaction of firms' investment …

, total factor productivity evolves endogenously as a consequence of costly investment in R&D and adoption of new technologies … mechanism between overall economic conditions and investment in productivity-enhancing technologies. As to the sources of the … euro area productivity slowdown, we conclude that a decrease in the efficiency of R&D investment is among the key factors …

of employment, investment, and output are about as persistent as in the data, with an amount of inattention consistent … news about future productivity. By contrast, the baseline RBC model produces neither persistent growth rates nor business …

Deficits" discussion of the 1980s. In contrast, during the 1990s productivity growth has been identified as the primary cause … importance of budget deficits and productivity shocks for the determination of the current account. Using a sample of 21 OECD … current account, while country-specific productivity shocks appear to play a key role. …