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prices. We show that the standard practice of estimating the speed of adjustment of such variables with partial-adjustment … speed of adjustment inferred from aggregates of a small number of agents is likely to be close to instantaneous. While …, even after aggregating investment across all establishments in U.S. manufacturing, the estimate of its speed of adjustment …
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This paper analyses the flexibility decision of firms. In particular we (a) ask whether the flexibility choice is influenced by market structure (concentration, market growth, ...), (b) compare the firms' actual choices with welfare maximising flexibility decisions (c) investigate the...
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