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The decisions of firms on investment and hiring play a crucial role in business cycle fluctuations. This paper explores their dynamic behavior in the presence of frictions. It does so within a unified framework, stressing their mutual dependence and placing the emphasis on their joint,...
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Labor market regulations have often been blamed for high and persistent unemployment in Europe, but evidence on their impact remains mixed. More recently, attention has turned to the impact of product market regulations on employment growth. This paper analyzes how labor and product market...
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an example of a silly or self-serving regulation. Oddly, little work investigates the actual cost to consumers due to the … entry restriction. This paper estimates the cost of a particular aspect of the regulation -- the number of hours of required … estimates are statistically significant and provide a vivid illustration of the "capture" hypothesis of regulation in action …
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