productivity increases shift perfect competition

Key words: RBC models, unemployment, productivity growth.Įl nexo entre crecimiento de la productividad y el desempleo se ha estudiado de varias maneras durante mucho tiempo. Using Maximum Likelihood Estimation (MLE) and Structural Vector Autoregression (SVAR), we are able to find the theoretical hypotheses in a diverse set of empirical data. Third, we explore the effect of productivity growth on unemployment empirically. The dynamic general equilibrium model predicts a positive effect of productivity on unemployment in the short-run and a negative unemployment effect in the long.

Second, to study the effects of productivity growth on unemployment more rigorously we formulate a dynamic general equilibrium model in which the agents optimize their decision in two stages.

First, we discuss some important contributions in the literature studying the relationship between productivity growth and unemployment both in the short-run and long-run perspective. In this paper we present a new one, which is to disaggregate data on productivity growth into its short and long-run component. The nexus between productivity growth and unemployment has been studied in various ways for a long time. **** Schwartz Center of Economic Policy Analysis, New School, and Center for Empirical Macroeconomics, *** Schwartz Center of Economic Policy Analysis, New School, Pu Chen*, Gang Gong**, Armon Rezai***, Willi Semmler****

Productivity Shocks in the Short and Long-Run: An Intertemporal Model and EstimationĬhoques de la productividad en el corto y largo plazo: un modelo y estimación intertemporales

Productivity increases shift perfect competition