Explanations of procyclical productivity play a key role in a variety of business-cycle models. Most of these models … aggregate productivity changes into several terms, each of which has an economic interpretation. However, many of these terms …

and capital are important for explaining procyclical productivity. Here I present two simple and direct tests of these …

procyclicality of productivity, and simultaneously predicts large welfare losses from monetary non-neutrality. The key features of …

externalities, productivity growth and direct production activities are complements. An expansion therefore has a positive long …-run effect on total factor productivity. In the second type of approach, hereafter labeled 'opportunity cost or 'learning …-by-doing', productivity growth and production activities are substitutes. The opportunity cost of some productivity improving activities falls …

- makes the extent of procyclical productivity depend mainly on the extent of labor hoarding. We show that indeed, whether … productivity is measured via the Solow method using labor's share in revenues or using other methods, it tends to be more …

Measured productivity is strongly procyclical. Real business cycle theories suggest that actual fluctuations in … productivity are the source of fluctuations in aggregate output. Keynesian theories maintain that fluctuations in aggregate output … to explain the procyclicality of productivity. If observed productivity shocks are true productivity shocks, a function …

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