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The Indeterminacy School in Macroeconomics exploits the fact that macroeconomic models often display multiple … Indeterminacy School has been used to explain volatility in financial markets. The second phase of the Indeterminacy School has been … used to explain periods of high persistent unemployment. The two phases of the Indeterminacy School provide a microeconomic …
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We study how two distinct dimensions of peer ethnic diversity (ethnic fractionalization and ethnic polarization) affect occupational choice. Using longitudinal administrative data and leveraging variation in ethnic composition across cohorts within schools, we find evidence for two opposing...
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This paper proposes tests of policy ineffectiveness in the context of macroeconometric rational expectations models. It is assumed that there is a policy intervention that takes the form of changes in the parameters of a policy rule, and that there are sufficient observations before and after...
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Much of macroeconomics is concerned with the allocation of physical capital, human capital, and labor over time and across people. The decisions on savings, education, and labor supply that generate these variables are made within families. Yet the family (and decision-making in families) is...
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