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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/27348
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| Title: | A Model of TFP |
| Authors: | Lagos, Ricardo |
| Issue Date: | Dec-2001 |
| Series/Report no.: | S-MF-01-07 |
| Abstract: | This paper proposes an aggregative model of Total Factor Productivity
(TFP) in the spirit of Houthakker (1955-1956). It considers a frictional
labor market where production units are subject to idiosyncratic shocks
and jobs are created and destroyed as in Mortensen and Pissarides
(1994). An aggregate production function is derived by aggregating
across production units in equilibrium. The level of TFP is explicitly
shown to depend on the underlying distribution of shocks as well as on
all the characteristics of the labor market as summarized by the
job-destruction decision. The model is also used to study the effects of
labor-market policies on the level of measured TFP. |
| URI: | http://hdl.handle.net/2451/27348 |
| Appears in Collections: | Macro Finance
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