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affected by bank branch deregulation and employment protection occurring over 1972-1993. We find that financial liberalization …, employment protection promotes those industries that are more knowledge intensive, while the effect of financial liberalization … an efficiency channel, better reallocating resources across sectors, while employment protection creates higher …
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This paper develops a simple model for measuring potential output that uses data on inflation, unemployment, and capacity utilization. We apply the model to 10 countries, in addition to the United States and the euro area. While there is a substantial amount of uncertainty around our estimates,...
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