Hall has pointed out that, when there is perfect competition and price flexibility, labor hoarding alone will not induce the Solow residual measured using labor's share in revenues to be procyclical. We show that, even with perfect competition, a small amount of price rigidity - we assume firms...

Hall has pointed out that, when there is perfect competition and price flexibility, labor hoarding alone will not induce the Solow residual measured using labor's share in revenues to be procyclical. We show that, even with perfect competition, a small amount of price rigidity - we assume firms...

This research indicates that with the changes in economic cycles, China's production costs are experiencing “wave-shaped” spiral growth. From 2004 to 2008, China's grain production costs increased rapidly, with the primary driving force the rapid growth of labor, land and material costs. In...