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Policy preference functions (PPFs) explicate trade-offs among various political economic groups concerned with the policy process. Estimation methods for PPFs are detailed. The stochastic nature of PPF parameters is discussed and a method for developing standard errors is introduced. Hypothesis...
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We quantitatively assess the macroeconomic effects of country-specific supply-side reforms in the euro area by simulating EAGLE, a multi-country dynamic general equilibrium model. We consider reforms in the labor and services markets of Germany (or, alternatively, Portugal) and the rest of the...
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