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Intro -- Contents -- I. INTRODUCTION -- II. CONSUMPTION, INVESTMENT, AND SAVINGS IN CHINA -- III. THE CHINESE ECONOMY …. INTRODUCING INVESTMENT WEDGE -- VII. FINANCIAL FRICTIONS AS INVESTMENT WEDGES -- VIII. CONCLUSIONS -- REFERENCES. …
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We develop a simple macroeconomic model that assesses the effects of higher foreign aid on output growth and other macroeconomic variables, including the real exchange rate. The model is easily tractable and requires estimation of only a few basic parameters. It takes into account the impact of...
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