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Suppose Country A has regulations that make corporate takeovers difficult for target management to block and country B has regulations that let target managers block
Suppose Country A has regulations that make corporate takeovers difficult for target management to block and country B has regulations that let target managers block corporate takeovers easily. Assuming shareholders are subject to the "recency" bias highlighted in behavioral finance, but that other decisions-makers are rational, through possibly with different degrees of talent and foresight, explain possible implications for the Solow residuals of the two countries. Please provide a detailed answer in as many words as possible. Thank you
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