Koren, Miklós (contributor); Tenreyro, Silvana (contributor) - 2005 - This version: December 3, 2004
paper, which may be revised, is available on the web site of the Federal Reserve Bank of Boston at
http://www.bos.frb.org/economic/wp/index.htm.
The …. First, capacity constraints
would not bind in equilibrium. Economic growth takes place via the expansion of machine … the following
aggregate production function for the final good (4):
Y = nφL.
The economic environment is characterized as …