rationalizes this observation through sectorial differences in intermediate input shares. As aggregate productivity and income grow …

models, emphasizing two discrepancies between theory and data that we refer to as anomalies. The first is the consumption/output/productivity … analogous consumption and productivity correlations. In theoretical economies we find, for a wide range of parameter values …, that the consumption correlation exceeds the productivity and output correlations. The second anomaly concerns relative …

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

, to economically and statistically significant declines in domestic output and productivity. Tariff increases also result …. The effects on output and productivity tend to be magnified when tariffs rise during expansions, for advanced economies …

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 …

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

a stochastic productivity trend, in addition to temporary productivity shocks; or allowing for foreign interest rate …, working capital versus spreads linked to expected future productivity, the latter emerges as key for a reasonable …

studied by real business cycle theorists. Contrary to the model's implications, forecastable movements in labor productivity …

features of the joint behavior of average productivity and hours worked: (i) average productivity and hours worked do not … display any marked contemporaneous correlation, (ii) average productivity is positively correlated with future hours worked …, and (iii) average productivity is negatively correlated with lagged hours worked …