equilibrium model wherein firms face persistent shocks to aggregate and individual productivity. In our model economy, optimal …,s) firm-level investment policies.In the presence of persistent heterogeneity in capital, debt and total factor productivity … of capital that, in turn, imply large and persistent reductions in aggregate total factor productivity. We find that an …

equilibrium portfolios and asset prices. When the constraints do not bind, productivity shocks cause standard real …

productivity growth, higher markups in product markets, and spending declines resulting from tighter lending standards at financial …

. We construct a new version of Lucas?s (1972) monetary misperceptions model, with a real shock (productivity) and a … to develop a new procedure for identifying the two shocks. The identified productivity shock has a large country …-specific component, and is highly correlated with actual productivity. The identified monetary shock has a large common component, and is …

job destruction rate serve to magnify the" effects of productivity shock on output, as well as making the effects much …

We assess the quantitative impact of firing costs on aggregate total factor productivity (TFP) in a dynamic general …-equilibrium framework where the distribution of establishment-level productivity is not invariant to the policy. Firing costs not only … generate static factor misallocation, but also a worsening of the productivity distribution contributing to large aggregate TFP …

using first-order approximations. In our estimated medium-scale DSGE model, a loss of confidence about productivity works …