inclusion of productivity shocks in standard New Keynesian Phillips Curve (NKPC). The question of interest is on the empirical … importance of and whether productivity shocks shift the Phillips curve using U.S. and Euro area data. Highlighting the inclusion … of productivity growth, we employ a hybrid model specification augmented with a productivity term. The model is estimated …

The diffusion of knowledge in the world generates positive externalities if knowledge flows increase the productivity … productivity. We first estimate the determinants of knowledge flows across 141 sub-national regions in 19 countries of Europe and … productivity of R&D resources in generating innovation (patenting) and productivity (TFP). While we find that knowledge diffusion …