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competitiveness and sufficiently separates individuals who choose different effort levels, the market allocation is Pareto superior to … a social planner’s allocation. We construct a specific market game that naturally generates robust equilibria with these …
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What is the optimal policy response to a negative sectoral shock? How do frictions in goods and labor markets affect the nature and speed of the process of reallocating resources across alternative uses? Should government controlled inputs be allocated to compensate for frictions faced by the...
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