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This paper investigates the impact of the financial crisis on investment decisions in innovative versus non … more likely to suffer from the financial crisis and to reduce their investment expenditures in general. To some extent … investment growth than non-innovative firms. …
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In this note we compare the laissez-faire steady-state solution in the Howitt and Aghion (1998) model to the social optimum. The analysis offers several new insights in comparison to the welfare analysis in Aghion and Howitt (1992). We find various new distortions between private and optimal...
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