productivity shocks, using capital-labor trade-off. The model generates higher volatilities of key variables and therefore enhances …We implement capital in an endogenous separations New Keynesian matching model. In contrast to the vintage capital … theory, we suggest a more general approach, such that workers have unrestricted access to a proportional share of the capital …

capital and labor, but also on changes in the allocation of these inputs across firms. As the latter effects are neglected in … that changes in allocation of capital and labor have pronounced effects on GDP-growth for most European countries. Further …. -- aggregation of production functions ; distribution of capital and labor ; firm heterogeneity ; growth accounting ; structural …