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Growth Effects of Free Trade under Increasing Returns

✍ Scribed by Ilaria Ossella-Durbal


Book ID
108566559
Publisher
John Wiley and Sons
Year
2002
Tongue
English
Weight
157 KB
Volume
53
Category
Article
ISSN
1352-4739

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We show that a one-sector real business cycle model with mild increasing returns-to-scale, variable capital utilization and saddle-path stability is able to produce qualitatively realistic business cycles driven solely by disturbances to government purchases. Due to an endogenous increase in labor p