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factor, and external investment adjustment costs. First-order conditions of the model are estimated by the generalized method … of moments using manufacturing industry data from the US, Canada, West Germany, the UK (all 1960.I-1988.IV), France (1970 …
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As large physical capital stock projects need long periods to be built, a time-to-build specification is incorporated in factor demand models. Time-to-build and adjustment costs dynamics are identified since by the first moving average dynamics, whereas by the latter autoregressive dynamics are...
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