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Technology change is modeled as the result of decisions of individuals and groups of individuals to adopt more advanced technologies. The structure is calibrated to the U.S. and postwar Japan growth experiences. Using this calibrated structure we explore how large the disparity in the effective...
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for capital. We find a negative cross-country correlation between the efficiency of unskilled labor and the efficiencies … this frontier, increases in the efficiency of unskilled labor are obtained at the cost of declines in the efficiency of …
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