We study the implications of having different sources of nominal rigidities on the relationship between productivity … growth and shocks volatility in a model with procyclical R&D and imperfect competition in goods and labor markets. We show …

We investigate the controversial issue whether unemployment is related to productivity growth in the long run, using U …. Therefore the secular decline of unemployment since the mid 1990s indeed stemmed from higher average productivity growth. The … initial and final regimes are essentially equal, thus supporting theories that explain the productivity slowdown by a slow …