We develope a growth accounting method using the whole neoclassical growth model. We obtain three primary findings from our analysis of the U.S. economy during 1954-2017. First, the efficiency wedges in the entire period accurately account for the evolution of U.S. productivity and labor share....

We conduct Business Cycle Accounting analyses for both the Euro Area and the United States. If the observed changes in the factor income shares reflect the frictionless competitive adjustment of productive factors, then we find that the capital-efficiency wedge was the main force driving the...

Our Business Cycle Accounting exercise reveals that both capital and investment efficiency declines played a prominent role in accounting for the output downturn during the U.S. Great Recession. The evidence indicates that an increase in firms’ investment costs may have played a substantial...

Our Business Cycle Accounting exercise reveals that both capital and investment efficiency declines played a prominent role in accounting for the output downturn during the U.S. Great Recession. The evidence indicates that an increase in firms’ investment costs may have played a substantial...

We apply the Chari et al. (2002, 2007) methodology to develop a growth accounting exercise for the U.S. economy during 1954--2017. Unlike them, we focus on perfect foresight models. We obtain three primary findings. First, the efficiency wedges in the entire period accurately account for the...

By conducting wedge-growth accounting, we assess the contribution of the economic forces (expressed as wedges in the equilibrium conditions of the neoclassical growth model) driving Spanish economic growth from 1850 to 2019. We find that declining investment and capital-efficiency wedges slowed...

I develop a neoclassical growth model in which the government accumulates contestable social infrastructure. In this framework, both a more accountable and more fairness governance encourages governmental accumulation of social infrastructure which fosters productivity. According to the...

We develop a neoclassical growth model with imperfect property rights in which predation entails both waste of resources and deadweight losses, the latter becoming very large when the predation rate is high. According to the model, in the United States, the welfare costs of crime represent a...