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This paper presents an Agent-Based Model (ABM) that seeks to explain the concordance of sluggish growth of productivity … and of real wages found in macro-economic statistics, and the increased dispersion of firm productivity and worker … and low productivity firms seeking to cut wages. The model highlights the antipodal competitive dynamics between a …
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There is good reason to believe that R&D influences on TFP growth in other sectors are indirect. For R&D to spill over, it must first be successful in the home sector. Indeed, observed spillovers conform better to TFP growth than to R&D in the upstream sectors. Sectoral TFP growth rates are thus...
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