EconPapers    
Economics at your fingertips  
 

Admiration is a source of multiple equilibria and indeterminacy: A comment on Chen and Hsu (2007)

Yukio Karasawa-Ohtashiro (), Dapeng Cai () and Akihiko Yanase ()

Economics Letters, 2018, vol. 168, issue C, 141-143

Abstract: The aim of this note is to revise and correct the properties of steady state(s) obtained in Chen and Hsu (2007). They proved that admiration and decreasing marginal impatience may establish indeterminacy when the steady state is unique. Instead, we prove that, in the long-run equilibrium (equilibria), (i) indeterminacy never occurs when the steady state is unique, and (ii) indeterminacy may occur only when the steady states are not unique.

Keywords: Consumption externality; Neoclassical growth model; Multiple steady state; Indeterminacy (search for similar items in EconPapers)
JEL-codes: E62 O40 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176518301472
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:168:y:2018:i:c:p:141-143

DOI: 10.1016/j.econlet.2018.04.018

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-12-09
Handle: RePEc:eee:ecolet:v:168:y:2018:i:c:p:141-143