For Online Publication : Online Appendix to “ The Great Diversi fi cation and Its Undoing ”
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چکیده
To think quantitatively about comovement, we specify the model of Section I. We use a CES production function for one final good. 42 Thus, we can solve the structure of this economy in closed form, and quantify its comovement. Our model differs in a series of small ways from 43 Its main virtue is that it is solvable in closed form, so that the mechanisms are fairly transparent.
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