The paper analyses whether business cycle fluctuations affect long-run growth. This hypothesis is tested using quarterly time series for the G7-countries. A vector-autoregressive model containing total factor productivity and a survey-based direct measure of the business cycle is estimated. In...

Structural vector-autoregressions with long-run restrictions are extraordinarily sensitive to low-frequency correlations. This paper explores this sensitivity analytically and via simulations, focusing on the contentious issue of whether hours worked rise or fall when technology improves. Recent...

We study whether technology gains in sectors related to Information and Communications Technology (ICT) increase productivity in the rest of the economy. To separate exogenous gains in ICT from other technological progress, we use the relative price of ICT goods and services in a structural VAR...