Ball, V. Eldon; Mesonada, Carlos San Juan; Ulloa, Camilo A. - Departamento de Economía, Universidad Carlos III de Madrid - 2011
This paper examines the relation between the business cycle and convergence in levels of total factor productivity (TFP …) across states. First, we find evidence of convergence in TFP levels across the different phases of the business cycle, but … with the rate of catch-up, the embodiment effect was much stronger during low economic activity phases of the business …