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Countries differ substantially in the extent to which more productive firms are large and/or are becoming larger and less productive firms are small and/or becoming smaller. A challenge for both emerging and advanced economies is that achieving such static and dynamic allocative efficiency...
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capital accu- mulation. Our estimation strategy searches for parameters that minimize ex post errors in an Euler equation … estimation of parameters of dynamic optimization problems in which non-convexities lead to extended periods of investment …
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