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The acceleration of productivity since 1995 has prompted a debate over whether the economy's underlying growth rate will remain high. In this paper, we propose a methodology for estimating trend growth that draws on growth theory to identify variables other than productivity - namely consumption...
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’s income. Incentive contracts of sufficient yet modest convexity are shown to result in an indeterminate general equilibrium …
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Empirical evidence suggests a positive association between income levels and growth rates on the one hand, and …
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