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In this paper we develop a new methodology for finding optimal government policies in economies with heterogeneous agents. The methodology is solely based on three classes of equilibrium conditions from the government's and individual agent's optimization problems: 1) the first order conditions;...
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externality would be inconsistent with observed levels education subsidies. -- Augmented Solow model ; education externalities …
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This paper is the introduction to the forthcoming "Macroeconomic dynamics" special issue on "Measurement with theory". …
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