Italy’s deep-rooted structural problems resulted in an unsatisfactory productivity performance and a dismal growth over … Italy’s economy. With output back to its end-2001 level, Italy’s output losses associated with the crisis have been, thus … decline in output is mainly accounted for by a collapse in productivity; in the medium term, employment and capital are also …

of standard Real Business Cycle models, a positive shock to the underlying rate of total factor productivity growth …