unemployment on productivity growth heavily depends on the influence of human capital in the production function. In the … traditional Solow model, unemployment has neither an influence on long-run productivity growth nor on the long-run level of … productivity. However, if human capital matters, unemployment has a long-run effect on the level of productivity. Moreover, if we …

the growth rate and the level of productivity. The long-run level of productivity is reduced if higher unemployment leads …-run productivity growth. Using panel data from 13 OECD countries from 1960 to 1990, we find evidence that an increase in unemployment … scales down the long-run level of productivity. …

We study how financial market efficiency affects a measure of diversification of output across industrial sectors … and for various levels of disaggregation, we construct a benchmark measure of diversification as the set of allocations of … faster for sectors that have a higher "natural" long-term risk-adjusted growth and which exhibit higher information frictions …