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

Barbara Annicchiarico and Alessandra Pelloni

CIMEO, Sapienza University of Rome from Department of Economics and Law, Sapienza University of Rome

Abstract: We study the implications of having different 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 effects 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.

Keywords: productivity; growth; volatility (search for similar items in EconPapers)
JEL-codes: E32 E52 O42 (search for similar items in EconPapers)
Date: 2011-12
New Economics Papers: this item is included in nep-fdg and nep-mac
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Related works:
Journal Article: Productivity growth and volatility: how important are wage and price rigidities? (2014)
Working Paper: Productivity Growth and Volatility: How Important Are Wage and Price Rigidities? (2013)
Working Paper: Productivity Growth and Volatility: How Important are Wage and Price Rigidities? (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ter:wpaper:0089

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