preference or more generally a demand shock. More recently two other explanations have been advocated: surprise changes in …

identification procedure, we show that the dominant shock driving total factor productivity (TFP) is akin to a diffusion or news … shock and that shock transmission has changed over time. Specifically, the behavior of hours worked is notably different … shock propagation. …

correlations of hours and productivity in response to technology shocks ('productivity-hours puzzle'). In this paper we show that … by just enhancing the standard frame- work with investment adjustment costs can resolve the 'productivity-hours puzzle'. …

investment-specific technology shock, affects the transformation of consumption into investment goods and is identified with the … relative price of investment. The second shock affects the production of installed capital from investment goods or, more … broadly, the transformation of savings into future capital input. We find that this shock is the most important driver of U …