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We formulate and estimate a business cycle model which can account for key business cycle properties of labor market variables and other aggregates. Three features distinguish our model from the standard model with Search And Matching (SAM) frictions in the labor market: frictional firm entry,...
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impact on public debt and the impact on other macroeconomic variables (unemployment and growth). The main results are the … have a statistically significant and negative effect on the current unemployment rate and a positive effect on the previous … period's unemployment rate. Intuitively this can be explained by noting that when privatization is announced the accompanied …
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