Wang, Pengfei; Wen, Yi - Federal Reserve Bank of St. Louis - 2006
(i) N(i)1 Y (i), where W and R denote the real wage and the real rental rate, respectively.
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Letting denote the … the real wage depends on the marginal cost), Yt = Y ( t;Kt):
In a symmetric equilibrium, P(i) = P = 1, and assuming that …