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 Houthakker (1955-1956). It considers a frictional labour market where production units are subject to idiosyncratic shocks and jobs are created and destroyed as in Mortensen and Pissarides (1994). An...