HIGHLIGHTS
SUMMARY
Output bottoms out at almost 6% below the previous steady_state value, and at more than 3% below the new steady_state value. This involves slightly increasing their fixed capital holdings and increasing investment levels to 1.35 times the steady_state level. The entrepreneurs start to take on debt, to operate with more of the fixed asset than in steady_state, and to build up stocks of zero carbon 26 A less arbitrary choice would have been the issue of perpetuities, but this would have changed the steady_state, which is problematic since the authors are running a . . .
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