We analyze the euro area business cycle in a medium scale DSGE model where we assume two stochastic trends: one on total factor productivity and one on the in ation target of the central bank. To justify our choice of integrated trends, we test alternative speci cations for both of them. We do so, estimating trends together with the model's structural parameters, to prevent estimation biases. I...

Can we use neoclassical growth model to single out the important transmission channels through which primitives a¤ected the Indian economy and caused the remarkable growth of the period 1982 to 2002? In this paper, we answer the question by applying the new technique of business cycle accounting to the Indian economy. Business cycle accounting procedure is based on the idea that primitives a¤ec...

The recent financial crisis has created a significant deviation between real world and existing business cycle theories. This paper follows the spirit of McGrattan and Prescott (2012) and reassesses this labor productivity puzzle by considering a real business cycle (RBC) model with R&D assets and organizational capital. It contributes to the literature in two ways. First, R&D assets and organi...

In the last decade, a rising number of firms have adopted international environmental management and product standards such as the international ISO 14001 management standard or organic certification. While emerging research analyzes the impact of these practices on environmental performance or financial performance, there is, to our knowledge no empirical research on the effect of these standa...

Intelligent agents offer a new and exciting way of understanding the world of work. In this paper we apply agent-based modeling and simulation to investigate a set of problems in a retail context. Specifically, we are working to understand the relationship between human resource management practices and retail productivity. Despite the fact we are working within a relatively novel and complex d...

Recent research suggests that much of the cross-firm variation in measured productivity is due to differences in use of advanced management practices. Many of these practices – including monitoring, goal setting, and the use of incentives – are mediated through employee decisionmaking and effort. To the extent that these practices are complementary with workers’ skills, better-managed firms wil...