-supported dimensions. First, we assume that agents cannot directly observe the individual components of the productivity shock and instead … large persistence parameter on the trend component of productivity. Second, we propose an alternative learning mechanism in …

correlation between hours worked and labor productivity. In this paper, I show that this conjecture is not necessarily correct. In … the basic RBC model, I find that hours worked fall and labor productivity rises after a positive permanent technology … a positive permanent technology shock along with a rise in labor productivity that are in line with what the data …

This paper examines the effects of expansionary technology shocks (shocks that increase labor productivity and factor … inputs) as opposed to contractionary technology shocks (shocks that increase labor productivity, but decrease factor inputs … productivity and production inputs. In addition, these shocks trigger different reactions of certain variables, which can help …

In this paper we study the transmission mechanism of productivity shocks in a model with rule-of-thumb consumers. In … of rule-of-thumb consumers is also very helpful in accounting for recent empirical evidence on productivity shocks. Rule … the delayed responses of output and consumption after a productivity shock. -- rule-of-thumb consumers ; productivity …