Lagos, Ricardo - In: Review of Economic Studies 73 (2006) 4, pp. 983-1007
This paper proposes an aggregative model of total factor productivity (TFP) in the spirit of <xref ref-type="bibr" rid="R13">Houthakker (1955-1956)</xref>. It considers a frictional labour market where production units are subject to idiosyncratic shocks and jobs are created and destroyed as in <xref ref-type="bibr" rid="R20">Mortensen and Pissarides (1994)</xref>. An...