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The debate in Australia on the (constant-output) elasticity of labour demand with respect to wages has wrongly sidelined the role of capital stock as a determinant of employment (Webster, 2003). As far back as 1991, Pissarides had argued that the influence of capital stock on the performance of...
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the end of 2007 as its only impulse - produces time series for aggregate labor usage, consumption, investment, and real … financial market - has investment fall steeply during the recession not because of any distortions with the supply of capital …
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