aggregation and empirical misspecification, relying on both theory and empirical evidence. Using data for a stylised aggregate … any total factor productivity measures computed. Our empirical findings imply that sectoral structure is of crucial …

quarterly time series for the G7-countries. A vector-autoregressive model containing total factor productivity and a survey … response of productivity to a business cycle innovation. The results suggest that positive business cycles shocks have a small … negative impact on long-run productivity. However, the results appear to be not robust against changes in the empirical model. …