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This study re-examines McMillan’s analysis (1978) of a dynamic small open economy with a public intermediate good. On the trade patterns of the open economy, we find results that were overlooked in McMillan’s analysis. Among others, if labor endowment is of intermediate size, there are...
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This paper examines an equilibrium growth model in which production activities generate environmental pollution that has a negative welfare effect and in which individual households’ subjective discount rate is a function of individual consumption, which is internal to each household, and of...
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