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The emphasis in post-Keynesian macroeconomics on wage- versus profit- led growth may not have been helpful. The profit share is not an exogenous variable, and the correlations between the pro.t share and economic growth can be positive for some exogenous shocks but negative for others. The...
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This paper studies the marginal product of private capital (MPK) with new data and a new framework to obtain a better understanding of international capital allocations and the Lucas Paradox (LP). Our point of departure is three influential studies of MPK's and, based on the most recently...
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In this paper, we show that a reduction in capital goods prices induced by trade policies can stimulate both investment … and labor. We exploit a quasi-natural experiment in the form of a trade reform in Colombia to study how firms with … differential exposure to reductions in capital goods tariffs react in terms of their investment and labor decision. Firms that see …
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