Indeterminacy in a Model with Production Externality and Inferiority in Consumption

Kazumichi Iwasa and Kazuo Nishimura

No DP2015-37, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: We examine the dynamic property of a two sector model with sector-speci c externality and inferiority in consumption, and show that if one good is inferior, it is possible that multiple steady states exist and indeterminacy occurs around the one of the steady states. Also, it will be shown that capital intensity reversal between the private and the social levels is not necessary for indeterminacy to arise, and factor intensity ranking across two sectors does not matter to the result.

Keywords: Externality; Inferiority; Indeterminacy (search for similar items in EconPapers)
Pages: 14 pages
Date: 2015-09
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 in a model with production externality and inferiority in consumption (2022)
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:kob:dpaper:dp2015-37

Access Statistics for this paper

More papers in Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University 2-1 Rokkodai, Nada, Kobe 657-8501 JAPAN. Contact information at EDIRC.
Bibliographic data for series maintained by Office of Promoting Research Collaboration, Research Institute for Economics & Business Administration, Kobe University ().