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fluctuations, both at the aggregate level and at the level of individual industries. We construct a New Keynesian DSGE model that …-specific, uncorrelated across industries. The bulk of the aggregate fluctuations, including those in aggregate measured productivity, are …
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The monopoly position of the public bureaucracy in providing public services allows government employees to acquire rents. Those rents can involve higher wages, monetary and non-monetary fringe benefits (e.g. pensions and staffing), and/or bribes. We propose a direct measure to capture the total...
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