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equilibrium feedback accounts for the observed comovement between investment and innovation, provides a powerful propagation …We analyze the role of endogenous capital-embodied innovation in macroeconomic dynamics. We first leverage a newly …-goods producers drops during recessions. We then develop a model of lumpy investment with heterogeneous firms and endogenous …
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We propose a new approach to model costly international trade, which includes the standard approach, the icebergʺ transport cost, as a special case. The key idea is to make the technologies of supplying the good depend on the destination of the good. To demonstrate our approach, we extend the...
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