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In this paper we investigate the quantitative importance of search and matching fric- tions in Bulgarian labor markets. This is done by augmenting an otherwise standard real business cycle model a la Long and Plosser (1983) with both a two-sided costly search and fiscal policy. This introduces a...
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cost. As a result of impulse responses to a domestic productivity shock, the higher elasticity of substitution between two …
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Since the publication of Keynes' "General Theory of Employment, Interest, and Money" in 1936 many new ideas and …
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