This paper reexamines wage and price dynamics in response to permanent shocks to productivity. We estimate a micro …

-normally distributed idiosyncratic productivity uncertainty and Leontief utilization choice yields an aggregate production function that is … about the productivity of an investment project typically reduces investment at the micro level, but it raises aggregate … hours and a medium-term expansion in the growth rate of labor productivity. …

Shifts in the long-run rate of productivity growth are difficult, in real time, to distinguish from transitory … fluctuations. We analyze the evolution of forecasts of long-run productivity growth during the 1970s and 1990s and examine in a … dynamic general equilibrium model the consequences of learning on the responses to shifts in the long-run productivity growth …

-normally distributed idiosyncratic productivity uncertainty and Leontief utilization choice yields an aggregate production function that is … about the productivity of an investment project typically reduces investment at the micro level, but it raises aggregate … hours and a medium-term expansion in the growth rate of labor productivity. …

Shifts in the long-run rate of productivity growth are difficult, in real time, to distinguish from transitory … fluctuations. We analyze the evolution of forecasts of long-run productivity growth during the 1970s and 1990s and examine in a … dynamic general equilibrium model the consequences of learning on the responses to shifts in the long-run productivity growth …

This paper reexamines wage and price dynamics in response to permanent shocks to productivity. We estimate a micro …