Productivity growth and volatility: how important are wage and price rigidities?

We study the implications of having diferent sources of nominal rigidities on the relationship between productivity growth and shocks volatility in a model with procyclical R&D and imperfect competition in goods and labour markets. We show that the efects of uncertainty on long-term growth not only depends on the source of ‡fluctuations, as recent literature shows, but also, and crucially, on whether prices and/or wages are rigid.

ANNICCHIARICO – PELLONI – Productivity growth and volatility: how important are wage and price rigidities?.

Questa voce è stata pubblicata in 1) Working Papers e contrassegnata con , , , , . Contrassegna il permalink.