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assess short-term regimes of aggregate demand and distribution in Germany. The obtained Impulse Response Functions (IRFs) of … (contemporaneous) causation. For the neo-Goodwinian baseline model, a profit-led demand schedule and a pro-cyclical wage-share are … positive shocks in the direct wage-share had a stronger (negative) impact on aggregate demand, than the supervisory wage share …
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"We study inferences about the dynamics of labor adjustment obtained by the "gap methodology" of Caballero and Engel [1993] and Caballero, Engel and Haltiwanger [1997]. In that approach, the policy function for employment growth is assumed to depend on an unobservable gap between the target and...
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