Aggregate and sectoral TFP; News shocks to TFP; Business cycle fluctuations
ELSEVIER SCIENCE SA
ECONOMICS LETTERS, 2014, 124(2), P.171-175
We investigate the effects of predictable changes in TFP at the sectoral level. Our findings can reconcile the seemingly contradictory findings in the literature. Shocks to predictable changes in investment-sector TFP are also found important for US business cycle fluctuations. (C) 2014 Elsevier B.V. All rights reserved.