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* Professor of Economics, Wayne State University. The author is grateful to Jim Cassing, Alan Deardorff, Norman Miller, Nick Oulton, Robert M. Stern, Marina v. N. Whitman, the members of the International Economics Workshops at the University of Michigan and the University of Pittsburgh, and especially an anonymous referee, for their valuable comments and suggestions. although the usual disclaimer applies. An earlier version of this paper was presented at the 1978 NBER Conference on Economics and Control (Austin, Texas).
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