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... ed.byO.BlanchardandS.Fischer. Cambridge,Mass.:MITPress. (1999): “The Cyclical Behavior of Prices and Costs,” in Handbook of Macroeconomics, ed. by J. Ta ylor and M. Woodford. Amsterdam: North-Holland. Schmitz, ... 1933. Together, then, Figures 2 and 3 suggest that the efficiency and labor wedges accoun t for essen tially all of the movements of output, labor, and investment in the Depression period and that the investment w ... o f labor across firms and, thus, to lo wer aggregate productivity. And Chu (2001) and Restuccia and Rogerson (2003) show ho w go vernment policies at the levels of plants and establishments lead...
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