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firm plays an important role in a firm’s decision to adopt a technology. Can such a theory help to explain the differences …
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"Price rigidity is the key mechanism for propagating business cycles in traditional Keynesian theory. Yet the New … in standard New Keynesian models, provided that investment is also subject to a cash-in-advance constraint. In particular …, we show that reasonable price stickiness can generate highly persistent, hump-shaped movements in output, investment and …
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"This paper provides a simple dynamic optimization model of durable goods inventories. Closed-form solutions are derived in a general equilibrium environment with imperfect information and serially correlated shocks. The model is then applied to scrutinize some popular conjectures regarding the...
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