Benigno, Pierpaolo; Ricci, Luca A.; Surico, Paolo - 2021
The paper presents a new empirical regularity between the volatility of productivity growth and long-run unemployment …, for a given level of long-run productivity growth. A theoretical framework based on asymmetric real wage rigidities is … shown to have the potential to rationalize this finding. The model tends to fit U.S. long-run unemployment better than a …