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Using unique firm-level survey data from Germany, this paper investigates two measures of supply constraints: a new direct measure that indicates material shortages and capacity utilization, a widely accepted measure of bottlenecks and slack. We document substantial heterogeneity in supply...
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-goods producers drops during recessions. We then develop a model of lumpy investment with heterogeneous firms and endogenous … equilibrium feedback accounts for the observed comovement between investment and innovation, provides a powerful propagation …
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