-2000 sample, the initial response of investment to a productivity shock with responses in the top quartile is 60% higher than the … shock. Conversely, a slowdown after a boom can lead to a long lasting investment slump, which is unresponsive to policy … smoothing in the investment response to aggregate shocks. The remaining 40% is explained by general equilibrium forces. The …

associated with structural unemployment and low productivity -- due to technological sclerosis' and a scrambling' of productivity … traditional unemployment cost is due to reduced productivity and is determined by the recession's cumulative effect on the economy …'s churn rate. Although a recessionary shock increases the economy's turbulence' at impact, semi-structural VAR evidence from …

associated with structural unemployment and low productivity--due to technological "sclerosis" and a "scrambling" of productivity … traditional unemployment cost is due to reduced productivity and is determined by the recession's cumulative effect on the economy …'s churn rate. Although a recessionary shock increases the economy's "turbulence" at impact, semi-structural VAR evidence from …