The initial expansionary phase of the business cycle appears to be characterized by what commentators have labelled a puzzling "jobless recovery" phase i.e., rapid growth in productivity (and output) with relatively sluggish expansion in employment. We demonstrate that a jobless recovery is a...

The impact of imperfections in financial markets on firm-level investment varies greatly across industries. In particular, it appears that the choices of firms producing capital goods are more likely to be constrained by financial factors. We argue that this is the case because the intrinsic...