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This paper develops a DSGE model with investment and capital accumulation build along demand-driven explanations of the … consumption while firms decide about recruiting effort as well as investment. This setting closed with market clearing in good and … investment is driven by self-fulfilling expectations about the adjustment cost of capital. Consistently with the view of business …
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major changes in the evolution of Keynes's business cycle theories: a) the saving- investment framework to understand … conditions; and d) the role of a comprehensive fiscal policy and investment policy to attenuate fluctuations. Finally, some …
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