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The dynamic responses of a developing economy to a variety of policy and external shocks are studied using an empirical macroeconomic model which embodies rational expectations, perfect capital mobility, and import rationing. These features, which are relatively new in developing-country...
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We show how time-dependent macroeconomic response follows from microeconomic dynamics using linear response theory and … a time-correlation formalism. This theory provides a straightforward approach to time-dependent macroeconomic model …
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