Indeterminacy and Sunspots with Constant Returns

Jess Benhabib and Kazuo Nishimura

Chapter Chapter 13 in Nonlinear Dynamics in Equilibrium Models, 2012, pp 311-346 from Springer

Abstract: Abstract Recently there has been a renewed interest in the possibility of indeterminacy and sunspots, or alternatively put, in the existence of a continuum of equilibria that arises in dynamic economies with some market imperfections. Much of the research in this area has been concerned with the empirical plausibility of indeterminacy in markets with external effects or with monopolistic competition and which exhibit some degree of increasing returns. While the early results on indeterminacy relied on relatively large increasing returns and high markups, more recently Benhabib and Farmer (1996a) showed that indeterminacy can also occur in two-sector models with small sector-specific external effects and very mild increasing returns.

Keywords: External Effect; Constant Return; Investment Good; Technology Shock; Labor Supply Elasticity (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Indeterminacy and Sunspots with Constant Returns (1998)
Working Paper: Indeterminancy and Sunspots with Constant Returns (1996)
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:spr:sprchp:978-3-642-22397-6_13

Ordering information: This item can be ordered from
http://www.springer.com/9783642223976

DOI: 10.1007/978-3-642-22397-6_13

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().