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 …

variance of its components, which is then applied to measure the relative contributions of productivity, hours per worker, and … employment to cyclical output growth across a panel of countries. Measured productivity contributes more to the cycle in Europe … cyclical employment fluctuations. -- Intensive margin ; extensive margin ; productivity ; business cycles ; variance …