aggregate welfare when the economy is hit by positive shocks to nontradable goods productivity or foreign interest rates. Fiscal …

improve the business conditions in one country have negative productivity and welfare effects on the trading partner. Second …

values of the standard Solow productivity residual. The equivalence holds if the representative household maximizes utility …

total factor productivity and by the capital stock per capita. These variables suffice to calculate welfare changes within a … the degree of market competition. It applies to open economies as well, if total factor productivity is constructed using … productivity be constructed with prices and quantities as perceived by consumers, not firms. Thus, factor shares need to be …

establishments' productivities. Inflation distorts aggregate productivity through firm entry dynamics. The model is calibrated to the … decrease in the steady-state average productivity of roughly 0.5 percent compared to the optimum's steady-state. This decrease … in productivity is not innocuous: it leads to a doubling of the welfare cost of inflation …

structurally estimate the key parameters of our model to construct counterfactual size, productivity and welfare distributions …

, since the latter intrinsically require the expenditure of time and thus are less amenable to productivity increases. Since …