Economics at your fingertips  

Indeterminacy and endogenous fluctuations with arbitrarily small liquidity constraint

Stefano Bosi () and Francesco Magris
Additional contact information
Stefano Bosi: EPEE - Centre d'Etudes des Politiques Economiques - UEVE - Université d'Évry-Val-d'Essonne

Post-Print from HAL

Abstract: The empirical relevance of indeterminacy and sunspot fluctuations has often been questioned on the basis of the implausibly high degrees of increasing returns to scale or unconventional calibrations for the fundamentals required. In this paper we study a one-sector economy with partial cash-inadvance constraint on consumption expenditures and show how such phenomena are by contrast quite pervasive. In fact, their scope improves as soon as the liquidity constraint is set smaller and smaller and eventually, for small enough amplitudes of the liquidity constraint, they are bound to prevail for whatever fundamentals specification. © 2003 Elsevier Science Ltd. All rights reserved.

Keywords: Indeterminacy; Cash-in-advance; Endogenous fluctuations (search for similar items in EconPapers)
Date: 2003-03
Note: View the original document on HAL open archive server:
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Published in Research in Economics, Elsevier, 2003, 57 (1), pp.39--51. ⟨10.1016/S1090-9443(02)00053-4⟩

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

Related works:
Journal Article: Indeterminacy and endogenous fluctuations with arbitrarily small liquidity constraint (2003) Downloads
Working Paper: Indeterminacy and Endogenous Fluctuations With Arbitrarily Small Liquidity Constraint (2001) Downloads
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:

DOI: 10.1016/S1090-9443(02)00053-4

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

Page updated 2022-04-24
Handle: RePEc:hal:journl:hal-02878008