) and financial shocks to households generate recessions. The model features three mild departures from the standard model … expenditures increase measured productivity. These departures provide a novel quantitative theory to explain recessions like those … in southern Europe without relying on technology shocks. …

This paper provides evidence on the effect of recessions and expansions on the productivity growth rate of productivity … perception of the business cycle. We find that productivity tends to converge in recessions because, in these periods, the …