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. Accordingly, R&D firms will optimally adjust their investment decisions to fit tax schedule changes. This study analyzes how … implementation. For this purpose, we consider adjustment costs involved in the investment process and allow firms to make a forward … looking investment decision in a R&D-based endogenous growth model. Calibrating the model with U.S. data, we find that a …
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In this paper, we examine the effects of introducing constraints on government borrowing using a continuous-time overlapping generations model of a small open economy. We consider government placing constraints on the amount of government bonds outstanding by establishing an upper limit, or...
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Frontmatter -- Contents -- List of Figures -- List of Tables -- Preface -- Main Symbols -- Part I. From the Short Run to the Long -- 1 Introduction: Toward a Classical Growth Model -- 2 The Nature of the Long Run -- Part II. Long-run Models of Fiscal Policy -- 3 A Two-Class Model -- 4 Saving and...
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fiscal deficits in a number of countries. Despite recent major fiscal reforms around the world, many countries suffer from …
Persistent link: https://www.econbiz.de/10013520531
In medieval times, most people identified with religious values and aggregate income and productivity grew at glacier speed. In the 20th century, religion played a much lesser role in daily life and income and productivity grew at high and unprecedented rates. The present paper develops a simple...
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