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 …, the effects of a financial shock are amplified and propagated through large and long-lived disruptions to the distribution …

aggregate productivity shocks, taste shocks, and, potentially, shocks to monopoly power. We show how the dispersion of … negative short-run response of employment to productivity shocks; (iii) imply that productivity shocks explain only a small …

preference or more generally a demand shock. More recently two other explanations have been advocated: surprise changes in …

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

This paper develops a general theory of aggregation in inefficient economies. We provide non-parametric formulas for …

We study the effect of releasing public information about productivity or monetary shocks when agents learn from …

competition from demand shocks in export markets – and the induced product mix reallocations – induce productivity changes within … the firm. We then empirically test for this connection between the demand shocks and the productivity of multi …-product firms exporting to those destinations. We find that the effect of those demand shocks on productivity is substantial – and …

-adjusted total factor productivity series, which we take as a measure of exogenous productivity. In contrast to the predictions of … the model, positive productivity shocks are estimated to be more expansionary at the ZLB compared to normal times. However …, in line with the predictions of the basic model, positive productivity shocks have a stronger negative effect on …