The theoretical literature on business cycles predicts positive factor inputs responses to productivity shocks. In this work we argue that, once conditional correlations are taken into account, hours worked and investment decline temporarily following a positive technology shock. First, we...

Excessive heat and cold weather waves may affect economic activity through energy markets. Yet, if a clear distinction of those events from other sources of variation in the economy would help central banks in stabilizing inflation is a research question that lacks theoretical and empirical...

The theoretical literature on business cycles predicts a positive investment response to productivity improvements. In this work we question this prediction from theoretical and empirical standpoints. We first show that a negative short-term response of investment to a positive technology shock...