Aguiar-Conraria, Luís (contributor); Wen, Yi (contributor) - 2005
indeterminacy.
Payment of imported foreign factors of production may act as a semi-fixed
cost, amplifying production externalities …, resultinginlower employment. The substitution
effect can be dramatically amplified if there exist production externalities in an
economy … standard neoclassical growth model
with imperfect competition or production externalities. In particular, we prove
that …