We embed skill obsolescence and endogenous growth into a New Keynesian model with search-and-matching frictions. The accounts for key features of the Great Recession: “productivity puzzle” “missing disinflation puzzle.” Lower aggregate demand raises long-term unemployment training costs associated obsolescence. employment hinders learning-by-doing, which slows down human capital accumulation, f...

Technology obsolescence also known as diminishing manufacturing sources and material shortages (DMSMS) is a significant problem for systems whose operational life is much longer than the procurement lifetimes of their constitute components. The most severely affected systems are sustainment-dominated, which means their long-term sustainment (lifecycle) costs significantly exceed the procurement...