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The aim of the paper is to investigate the effect of environmental stringency on innovation and productivity using a … innovation can be one of the channels through which higher sectoral productivity can be reached. The main findings suggest that … downstream stringency is the most relevant driver for innovation and that most of the effect of regulation on productivity is …
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This paper describes a simple model of aggregate and firm growth based on the introduction of new goods. An incumbent firm can combine labor with blueprints for goods it already produces to develop new blueprints. Every worker in the economy is also a potential entrepreneur who can design a new...
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