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For anyone who is interested in chasing down the reference to the "Carlos Diaz-Alejandro rule", it comes from "Trade policies and economic development" in International Trade and Finance: Frontiers for Research, Peter Kenen (ed.), 1975. Here is the quote (p. 97) : "By now any bright graduate student, by choosing his assumptions regarding distortions and policy instruments carefully, can produce a consistent model yielding just about any policy recommendation he favored at the start." Guillaume Daudin
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Sep 28, 2011