Are neutral and investment-specific technology shocks correlated?

The joint behavior of Total Factor Productivity (TFP) and the Relative Price Investment (RPI) in data lead several authors to conclude that neutral technology shocks are positively correlated with investment-specific shocks, challenging specification standard macroeconomic models. This paper rejects correlated-shocks hypothesis using both parametric non-parametric methods controlling for structural breaks. suggests moderately negative long-run covariation between RPI TFP constructed from chain-linked output, but is orthogonal consumption units. These results consistent a simple two-sector model which uncorrelated, while models cannot account second result. I it not necessary adapt macro allow processes.