have lower exposure to aggregate productivity risk. In equilibrium, physical capital requires a substantially higher …

weights on consumption and leisure are the main sources of output fluctuation. Shocks to the credit spread and productivity …

This paper demonstrates that increased optimism about future productivity can generate an immediate economic expansion …, expectations of higher future productivity raise the demand for new vintages of capital relative to old capital. Capital …

Standard real business cycle models must rely on total factor productivity (TFP) shocks to explain the observed …

decentralized banking that produces exchange credit. Positive shocks to credit productivity and money supply increase velocity, as … money demand falls, while a positive goods productivity shock raises temporary output and velocity. The paper explains such … important for velocity during less stable times and the goods productivity shock more important during stable times. …