Macroeconomic Dynamics Vol

Macroeconomic Dynamics Vol. 17, No. 7, October 2013 Pages 1367–1542 VOLUME 17, NUMBER 7, OCTOBER 2013 MACROECONOMIC DYNAMICS Volume 17, Number 7, October 2013 Contents

ARTICLES Public Intrastructure and Externalities in U. S. Manufacturing: Evidence from the Price-Augmenting AIM Cost Function Guohua Feng and Apostolos Serletis 1367 Binding Minimum Wage as an Equilibrium Selection Device Julie Beugnot 1411 Growth and Firm Dynamics with Horizontal and Vertical R&D MACROECONOMIC Pedro Mazeda Gil, Paulo Brito, and Oscar Afonso 1438 Credit Frictions and Firm Dynamics Zheng Zeng 1467 DYNAMICS Alternative Government Spending Rules: Effects on Income Inequality and Welfare G. C. Lim and Paul D. McNelis 1496 NOTES Note on Ergodic Chaos in the RSS Model Paulo S. A. Sousa 1519 A Note on Credit Market Development and Human Capital Accumulation Wai-Hong Ho 1525

EDITOR: WILLIAM A. BARNETT

113651005_17-7.indd3651005_17-7.indd 1 99/3/13/3/13 5:005:00 PMPM MACROECONOMIC DYNAMICS MACROECONOMIC DYNAMICS Editor: William A. Barnett, University of Kansas, Department of Economics, 356 Snow Hall, 1460 Jayhawk Notes for Contributors Boulevard, Lawrence, KS 66045–7523, USA, and The Center for Financial Stability, 1120 Avenue of the Americas, 4th Floor, New York, NY 10036, USA. Book Review Editors: Michele Boldrin, Department of Economics, Washington University, One Brookings Contributions. Contributions are welcome approved such citation; written authoriza- (charts, diagrams or other art work) at the from all countries. They should be written tion may be required at the Editor’s discre- end of the paper, indicating in the body of Drive, St. Louis, MO63130, and Universidad Carlos III, Madrid; Gregory D. Hess, Department of Economics, in English. tion. 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113651005_17-7.indd3651005_17-7.indd 2 99/3/13/3/13 5:005:00 PMPM MACROECONOMIC DYNAMICS

Volume 17, Number 7, October 2013 Contents

ARTICLES Public Intrastructure and Externalities in U. S. Manufacturing: Evidence from the Price-Augmenting AIM Cost Function Guohua Feng and Apostolos Serletis 1367 Binding Minimum Wage as an Equilibrium Selection Device Julie Beugnot 1411 Growth and Firm Dynamics with Horizontal and Vertical R&D Pedro Mazeda Gil, Paulo Brito, and Oscar Afonso 1438 Credit Frictions and Firm Dynamics Zheng Zeng 1467 Alternative Government Spending Rules: Effects on Income Inequality and Welfare G. C. Lim and Paul D. McNelis 1496

NOTES Note on Ergodic Chaos in the RSS Model Paulo S. A. Sousa 1519 A Note on Credit Market Development and Human Capital Accumulation Wai-Hong Ho 1525

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