Mismatch and Assimilation
---- Acknowledgments ----
This paper has been circulated under various titles. We are grateful for valuable comments and suggestions by Costas Arkolakis, Bob Becker, Mark Bils, Rick Bond, Anton Braun, Tom Cooley, Boyan Jovanovic, Loukas Karabarbounis, Sam Kortum, Finn Kydland, Zheng Liu, Serdar Ozkan, Steve Parente, Ed Prescott, B. Ravikumar, Ray Riezman, Peter Ruppert, Rob Tamura, Yin-Chi Wang, and Jianpo Xue, as well as those of the participants at the North America Summer Meeting of the Econometric Society, the Asian Meeting of the Econometric Society, the Conference on Dynamics, Economic Growth, and International Trade, the Midwest Macroeconomic Conference, the Society for Advanced Economic Theory Meeting, Tsinghua Macro Workshop, Academia Sinica, National Taiwan University, San Francisco Fed, UC-Santa Barbara, and Vanderbilt University. We gratefully acknowledge the financial support of Academia Sinica, the Chinese University of Hong Kong, and the Center for Economic Dynamics. Terry Cheung, Ting-Wei Lai and Kevin Li have provided excellent research assistance at various stages. The usual disclaimers apply. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.