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An establishment can improve its productivity by hiring workers from more productive establishments. Then, how … important is worker reallocation for aggregate productivity growth? To study this question, I develop a general equilibrium … knowledge diffusion mechanism increases the aggregate productivity growth by 0.14 percentage points and enhances welfare …
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German unifikation hit the West German economy in a prosperous and appeared as a huge demand shock at least for the first few quarters. This combination resulted in a major increase of imports from the main trading partners of West Germany, which may have helped to cushion recessionary trends...
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