maximum borrowing limit, and housing investment, homeownership, and household debt closely track aggregate productivity. In …

Labor productivity (LP) in the United States has gone from being procyclical to acyclical since the mid-1980s. Using … industry-level data, this paper first shows that total factor productivity (TFP), which is LP net of capital deepening, has … reasons for the change in the cyclicality of productivity. By decomposing TFP into technical change and input utilization, it …

Capital reallocation between firms is procyclical and leads to variations in measured aggregate productivity. In this … paper, we ask how much of the cyclical variation in measured productivity is the consequence of capital reallocation. We … build a heterogeneous-firm model to study the effects of exogenous shocks to total factor productivity (TFP) and to the …

these endogenous productivity fluctuations. The result focuses on the short-run absence of entry and incumbents' output … response given this quasi-fixity. Quantitatively we show the endogenous productivity effect is as large as a traditional …

We develop a theory linking "misallocation," i.e., dispersion in marginal products of capital (MPK), to macroeconomic … productivity by as much as 6%, suggesting large "productivity costs" of business cycles. …