We estimate a New-Neoclassical Synthesis model of the business cycle with two investment shocks. The first, an investment-specific technology shock, affects the transformation of consumption into investment goods and is identified with the relative price of investment. The second shock affects...

The dynamic stochastic general equilibrium (DSGE) models used to study business cycles typically assume that exogenous disturbances are independent first-order autoregressions. This paper relaxes this tight and arbitrary restriction by allowing for disturbances that have a rich contemporaneous...

"This paper examines the role of skilled labor in the growth of total factor productivity. We use panel data from manufacturing industries to assess the extent to which productivity growth in yearly cross section is tied to industry shares of skilled labor inputs. We find robust evidence that...