Financial conditions and labor productivity over the business cycle

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• 作者：Carlos A. Yé ; pez ^{carlos.yepez@umanitoba.ca}
• 关键词：E22 ; E32 ; E44 ; J23 ; J24
• 刊名：Economics Letters
• 出版年：2017
• 出版时间：January 2017
• 年：2017
• 卷：150
• 期：Complete
• 页码：34-38
• 全文大小：433 K
• 卷排序：150

文摘

The pro-cyclicality of productivity has substantially declined since the mid 1980s. We provide evidence that financial shocks have impinged on productivity post 1984. A model with credit frictions and financial shocks is consistent with the evidence. Binding collateral constraints introduce a wedge in firms demand for labor. A negative financial shock increases the wedge causing firms to lower labor demand.