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closely associated with a competing theory of the business cycle: Real business cycle theorists attribute SRIRL to procyclical … provide evidence against real business cycle theory in general. we propose tests for discriminating between the increasing …
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Macroeconomic dynamics are shaped by how individual incentives to spend and accumulate interact with the decisions of others. The goal of this paper is to identify--within a simple large-game-theoretic structure--which types of agent interactions favor which types of dynamic equilibrium...
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