Edge, Rochelle M.; Laubach, Thomas; Williams, John C. - 2004
-to-year transitory fluctuations in the rate
of productivity growth. The solid line in Figure 1 shows the annual growth rate of labor … labor productivity growth
was about 3 percent on average through the mid-1960s, slowed to 1-1/2 percent in the
1970s, and … for highly persistent
shifts in the trend growth rate.
We assume that agents observe the level of labor productivity, but …