Faccini, Renato; Ortigueira, Salvador - In: Journal of Economic Dynamics and Control 34 (2010) 8, pp. 1509-1527
Shocks to investment-specific technology have been identified as a main source of U.S. aggregate output volatility. In this paper, we present a model with frictions in the labor market and explore the contribution of these shocks to the volatility of labor market variables, namely, unemployment,...