investment-specific productivity. We document that in U.S. postwar quarterly data total factor productivity (TFP) and the … cointegrated if and only if neutral and investment-specific productivity share a common stochastic trend. We econometrically … relative price of investment are cointegrated. We show theoretically that TFP and the relative price of investment are …

-open-economy real-business-cycle model driven by nonstationary productivity shocks. We find that the RBC model does a poor job at … business cycles in emerging markets and, importantly, assigns a negligible role to nonstationary productivity shocks …

Using data for the G7 countries, I estimate conditional correlations of employment and productivity, based on a …) technology shocks appear to induce a negative comovement between productivity and employment, counterbalanced by a positive … positive technology shock, and (c) measured productivity increases temporarily in response to a positive demand shock. More …

rigidities: investment adjustment costs, variable capacity utilization, habit formation in consumption, and habit formation in … leisure. Business cycles are assumed to be driven by permanent and stationary neutral productivity shocks, permanent … investment-specific shocks, and government spending shocks. Each of these shocks is buffeted by four types of structural …

-cyclical and leads to variations in measured aggregate productivity. Using a simulated method of moments approach, different … reallocation with aggregate productivity …

We examine how credit constraints affect the cyclical behavior of productivity-enhancing investment and thereby … a long-term productivity-enhancing one. Because it takes longer to complete, long-term investment has a relatively less … volatility and growth. We first develop a simple growth model where firms engage in two types of investment: a short-term one and …

The cyclical behavior of the relative price of investment goods plays an important role in many modern macroeconomic … models. In this paper we examine the behavior of several measures of the relative price of investment goods for the U … investment appears predominantly procyclical. When looking at more disaggregated series, most measures are procyclical, a few …

The relative price of services rises with development. A standard interpretation of this fact is that productivity …-country income elasticity of sectoral productivity is large in non-traditional services (1.15), smaller in manufacturing (1.05) and … much smaller in traditional services (0.67). Eliminating cross-country productivity differences in non-traditional services …

The evidence for a productivity-based explanation for real exchange rate behavior of East Asian currencies is examined … relative productivity ratios, one finds a relationship for Japan, Malaysia, and the Philippines. Only when augmenting the … productivity variables, as well as other demand side factors, are less encouraging, except for a small subset of countries …

The sensitivity of U.S. aggregate investment to shocks is procyclical: the initial response increases by approximately … counterexample to the claim that microeconomic investment lumpiness is inconsequential for macroeconomic analysis …